Sep 2015 Financial News

NCB Capital Markets to launch in Barbados

Sep 18, 2015

Jamaica-based NCB Capital Markets Limited (NCBCM) aims to launch a subsidiary in Barbados following a US$2.5-million capital injection according to management.

NCBCM (Barbados) was incorporated in May this year but awaits regulatory approval from the Barbados Financial Services Commission to conduct financial services. However, it already started investing in Barbados via its Cayman arm which invested in a hotel in the country now best known globally for its pop star Rihanna.

"We have capitalised the company with US$2.5 million to start and we will inject additional capital as needed as the business grows," stated Steven Gooden, chief executive officer at NCBCM in a mailed response to Jamaica Observer queries on Wednesday.

The expansion forms part of the NCB group's strategy to diversify and grow revenues through regional expansion. NCBCM will establish an office in Barbados, and has identified a CEO for that territory.

"It was an opportune time to invest in Barbados as the country is currently going through a period of economic recovery and the government has been seeking public-private sector partnerships to help drive economic activity," said Gooden.

The Company will trade as NCB Capital Markets (Barbados) Ltd. Its establishment follows closely on the heels of NCBCM's acquisition of AIC Finance Limited, now NCB Global Finance Limited in Trinidad and Tobago, and the refocusing of its Cayman subsidiary, NCB Capital Markets (Cayman) Limited as a regional offshore wealth management hub.

"A number of regulatory changes are taking place, which collectively augurs well for us having an operation there at this time. NCBCM is already pursuing several opportunities in Barbados. We have recently won a mandate, through our Cayman office, to finance an important 153-bedroom beachfront condominium/hotel project in Barbados, and we are in active discussions on a number of other potential deals," Gooden indicated.

The company is now entering phase two of its regional expansion initiative, which will involve enhanced integration of the company's operations in current markets and the expansion into new ones. It will result in the positioning of the Trinidad and Tobago operation as an investment banking hub for the southern Caribbean including Guyana, Suriname and the ABC Islands --- Aruba-Bonaire-Curacao.

He also mentioned that NCB Global Finance is in the process of applying for a securities dealer licence to complement its current merchant bank operations. The integration and expansion will also benefit existing Jamaican clients seeking to conduct fundraising across the region or simply expand their own operations.

NCBCM will also explore opportunities to enter the Latin American region.

"Collectively, they have a population exceeding 80 million people and we are seeking to invest in economies that are growing and have capital markets with relatively low product penetration," he added.

NCBCM is part of the National Commercial Bank Jamaica group which made $8.5 billion in net profit on $19.3 billion in net interest income over nine months ending June 2015. The wealth, asset management & investment banking arm which comprises NCBCM made $2.5 billion in operating profit on $3.9 billion in total operating income for the group.

Source;
BY STEVEN JACKSON
jacksons@jamaicaobserver.com
Business reporter
Jamaica Observer
Friday September 18, 2015

http://www.jamaicaobserver.com/business/NCB-Capital-Markets-to-launch-in-Barbados_19229354