A consortium of banks in the Eastern Caribbean Currency Union have signed a definitive agreement to acquire assets of CIBC FirstCaribbean.

The consortium seeks to acquire CIBC FirstCaribbean’s branches and banking operations in Dominica, Grenada, St. Kitts and Nevis, and St. Vincent and the Grenadines.

This group comprises National Bank of Dominica, Grenada Co-operative Bank, St. Kitts-Nevis-Anguilla National Bank andd the Bank of St. Vincent and the Grenadines Limited, which also serves as the agent of the consortium

The acquisition will expand the group’s loan base by over $222m (XCD600m) and net deposit portfolio by $555.03m (XCD1.5bn).

The Bank of St. Vincent and the Grenadines managing director Derry Williams said: “This acquisition by the consortium represents a significant development in the evolution of the Banking System of the ECCU.

“Once approved by the regulators, we are very confident that it will lay the basis for further enhanced value creation in these economies and greater prosperity for our society.”

CIBC FirstCaribbean CEO Colette Delaney said: “The four indigenous banks are an excellent fit for the bank’s St. Vincent, Grenada, Dominica, and St. Kitts business, given their knowledge of the local markets match with our product offerings and client base and a strong market positioning. They bring a depth of local knowledge to the market and the needs of our clients there…”

The deal, which is subject to regulatory approval, will provide the group of lenders with additional scale.

As of 30 June 2021, they together held $6.4bn in deposits, which represents a 53% market share.

Earlier this year, Royal Bank of Canada successfully completed the sale of its Eastern Caribbean banking operations.