Dec 2008 Financial News

FirstCaribbean gets IDB boost for regional penetration

Dec 08, 2008

First Caribbean International Bank (FCIB) has signed off on a $200 million partial credit agreement with the Inter-American Development Bank (IDB), to establish the first risk-sharing guarantee facility for the Caribbean region.

The IDB last week announced that its Board of Executive Directors approved the loan to establish the risk-sharing facility, which will support at least $400 million in FirstCaribbean lending to private sector borrowers. According to First Caribbean, the agreement will support its long-term interests in Jamaica and other regional markets such as Barbados, Trinidad, The Bahamas and Belize.

The facility, it said, has been created to support financing for infrastructure, tourism and mid-size businesses with strong potential to generate jobs and boost productivity. Milton Brady, FirstCaribbean's managing director for corporate investment banking, and head of First Caribbean Jamaica, noted that the risk-sharing agreement is a clear vote of confidence by the IDB in FirstCaribbean and the region, which is especially welcome at a time when the global financial markets are in turmoil.

"Over the past few years, FirstCaribbean has secured major ground-breaking deals in capital markets and corporate financing throughout the region. Underpinning our bank's ethos is our commitment to innovation in support of our clients and contributing to regional development. This partnership allows us to leverage our financial strength to help our clients who are themselves focused on growing their businesses," said Brady. The IDB said that the risk-sharing facility can improve the effectiveness of the development bank's lending in the Caribbean by combining development objectives, internal expertise and resources with a top-tier local partner.

FirstCaribbean, which is headquartered in Barbados, was formed in 2002 through a merger of Canadian Imperial Bank of Commerce (CIBC) West Indies Holdings and Barclays' Caribbean operations. The Toronto-based CIBC is the majority shareholder in FirstCaribbean, which does business in 17 countries in this region.
The IDB is the leading source of long-term financing for economic and social development projects in Latin America and the Caribbean. Its Structured and Corporate Finance Department is responsible for non-sovereign guaranteed operations, which include loans and guarantees for private sector companies and state-owned entities.



Source:
The Jamaica Observer
Monday December 8, 2008
http://www.jamaicaobserver.com/magazines/Business/html/20081206T2100000500_143447_OBS_FIRSTCARIBBEAN__GETS_IDB_BOOST_FOR_REGIONAL_PENETRATION_.asp