Barclays and CIBC look to combine Caribbean operations

Mansoor

BARCLAYS AND CIBC announce that they are in advanced discussions which are intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean to create FirstCaribean International Bank.

Implementation of the combination would be subject to required approvals from government and regulatory authorities.

FirstCaribbean International Bank would bring together two complementary and leading financial services businesses in the Caribbean. It would establish First Caribbean International Bank as a significant Caribbean presence and enable it to play a key role in the region.

Under the structure of the proposed transaction, it is intended that Barclays and CIBC would each own approximately 45 per cent of the ordinary share capital of FirstCaribbean International Bank, with the remainder held publicly.

It is the intention of CIBC and Barclays to increase the public share holdings of FirstCaribbean International Bank beyond the initial 10 per cent to up to 20 per cent as soon as practicable. FirstCaribbean International Bank would retain the listings of CIBC West Indies Holdings Limited in Barbados, Trinidad and Tobago and Jamaica.

Barclays Private Banking and CIBC Wealth Management businesses and their clients are not included in the scope of the discussions and would remain under their respective Barclays and CIBC ownership.

Barclays and CIBC believe this combination would provide benefits and opportunities for customers, staff and the businesses above those which could be achieved by either operation on a stand -a-lone basis.

President and chief executive officer of CIBC West Indies Holdings Ltd., Michael Mansoor said: "Our goal would be to establish FirstCaribbean as a market leader in service, products, ease of access and innovation. With a combined history of 225 years of experience in the region we have a clear understanding of the business and consumer needs in this diverse group of nations. This will be a bank of the Caribbean, for the Caribbean, with connections to the world."

Barclays Regional Director of the Caribbean and Bahamas, Charles Middleton said, "We intend FirstCaribbean to be one of the leading banks in the Caribbean. Its size and diversity should provide our staff with a wide range of career opportunities. It is also the intention to offer staff a share purchase plan that will allow them to participate in the future growth of the company."

A further announcement will be made in due course.

Barclays is being advised by Credit Suisse First Boston, CIBC is being advised by World Markets.

Barclays

Barclays is one of the largest financial services group in the UK with operations throughout the world.

In the Caribbean, Barclays established a branch network in 1837. Barclays now has operations in 14 countries, across 25 islands and 45 outlets. The countries Barclays operates in are: Anguilla, Antigua, Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Dominica, Grenada, St.Kitts, St. Lucia, St. Marteen, St. Vincent and Turks & Caicos. Barclays is headquarted in Barbados.

Barclays Caribbean employs approximately 1500 staff serving 4000,000 customers: 350,000 onshore retail, 20,000 onshore corporate and 25,000 offshore customers. Personal banking services are offered in all 14 countries and offshore banking services are offered in five countries. Barclays has a current account market share of 20 per cent in its chosen markets. The group had total assets of US$6.2 billion at 31st December 2000.

CIBC

CIBC was first established in the Caribbean in 1920 and now has operations in Antigua, Bahamas, Barbados, Cayman Islands, Jamaica, St.Lucia, St. Vincent, and Turks and Caicos.

CIBC employs approximately 1600 staff serving 350,000 retail and commercial clients at 45 branches and offices in the Caribbean.

During the last few years, CIBC has reorganised all of its retail banking operations in the Caribbean under the umbrella of a holding company CIBC West Indies Holdings Limited. The company is listed on three regional stock exchanges :The Securities Exchange of Barbados, the Trinidad and Tobago Stock Exchange and the Jamaica Stock Exchange. In addition, two of its subsidiaries, CIBC Bahamas Limited and CIBC Jamaica Limited are also listed on their local exchanges.

CIBC West Indies Holdings is headquartered in Barbados. It had total assets of US$3.7 billion at 31 December 2000.

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