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Financial News

Oct 2018 Financial News

FirstCaribbean International Bank Limited - Notice of Material Change

Oct 19, 2018

On October 14, 2018 the Government of Barbados (“GoB”) announced that its proposal to exchange Barbados-dollar denominated debt for new instruments with different repayment terms was accepted by its domestic creditors.

FirstCaribbean International Bank Limited (the “Bank”) holds approximately US$445 million in GoB Barbados-dollar denominated debt instruments that will be exchanged for new Barbados-dollar denominated debt instruments with different repayment terms.  The Bank’s Q3/18 expected credit losses of US$46 million for these exposures re?ected our expectation for a government debt restructuring based on information available at the time.

The Bank also holds approximately US$30 million in US-dollar denominated GoB debt instruments for which a speci?c restructuring plan has not yet been announced, and approximately US$20 million in GoB US-dollar denominated debt instruments that is not expected to be included in the GoB’s comprehensive debt restructuring plan.

We are currently revising our estimate of the expected credit losses as a result of the exchange offer that was accepted by the domestic creditors, and anticipate that incremental expected credit losses will be recognized in our Q4/18 results set to be published on November 29, 2018.

Our Tier 1 and Total Capital ratios will remain strong and in excess of applicable regulatory requirements after recognizing the incremental expected losses noted above.

The Trinidad and Tobago Stock Exchange Limited
 19 October, 2018