Royal Bank of Canada (RBC) has entered into a definitive agreement to sell its banking operations in Suriname to Republic Bank.

Though the Canadian lender did not reveal the financial terms of the deal, it said the sale price roughly reflected the book value of RBC Suriname.

RBC added that it expects the sale to result in a loss of C$23 million, largely related to an estimated write-down for the proportionate share of RBC Suriname goodwill and other intangibles.

Commenting on the deal, RBC Caribbean Banking head Kirk Dudtschak said: "As we continue to focus our Caribbean operations on markets in which we can be a leading competitor for the long-term, we have made the decision to sell RBC Suriname to Republic Bank Limited."
"This transaction supports the successful repositioning of our Caribbean business for the future and allows us to focus on markets where we can strengthen our operational capabilities and where we see opportunities for growth," Dudtschak added.