Republic makes moves on Barbados National Bank

According to the website NationNews.com, Republic Bank, which is the parent company of BNB, is trying to get a 100 per cent control of the bank. Republic Bank already owns 65.13 per cent of BNB’s 96 million shares.

According to NationNews, the Barbados Government owns 17 million of the outstanding shares, 9.6 million are owned by the Barbados National Insurance Board and “a significant number” is owned by the Insurance Corporation of Barbados Limited.

Republic’s move is seen by some as an attempt to bolster its business here in Trinidad and Tobago, with the Web site noting that the bank, “is hoping local investors (in Barbados) will use some of the cash from the buyout to invest in the parent company (in Trinidad and Tobago).”

Managing director of Republic Bank Trinidad and Tobago David Dulal Whiteway is cited as noting that Republic “would inject about US$95 million ($TT598 million) into the Barbados economy as a result of the proposed buyout.”

Dulal-Whiteway was not able to answer calls to his mobile phone yesterday.

But according to the report, the bid is yet to receive approval from regulators here in Trinidad and Tobago.

“Republic Bank’s general counsel Jacqueline Quamina said after receiving the green light from local regulatory officials, the Trinidadians want to wrap up the deal by year-end,” it said.

The report also quotes BNB managing director Robert Le Hunte as noting that the deal comes after years of investment by BNB in retooling the organisation. He noted that Republic has, over the years, paid particular attention to its Barbados assets.

“According to the BNB boss, Republic Bank had put a larger percentage of its investment capital in Barbados over the last five years, than it had in other countries where the Trinidadians had acquired financial institutions such as Guyana and Grenada,” the report said.

Republic Bank’s moves come after its majority shareholding was acquired by the State via its intervention into the CL Financial Group. The intervention has come amidst general concerns over a slow-down in the economy which has placed stress on commerce.