Capital Markets 32
Building the ‘Deal Pipeline’ Our market is increasingly characterised by mergers, acquisitions, consolidation of portfolios and new business launches, as companies leverage their assets and human capital to maintain market share and competitiveness, or to expand. The examples are everywhere: AIC Financial Group in Trinidad and Tobago; National Commercial <strong>Bank</strong> and PanCaribbean in Jamaica; and the creation of Caribbean Money Market Brokers in Barbados. Building the Team In the last year, <strong>FirstCaribbean</strong> began the process of enhancing our human resources by taking on board key new personnel for the Capital Markets group. Our team includes persons versed in areas such as corporate finance, equity and fixed income trading, securitisation, foreign exchange trading, interest rate and foreign exchange swaps, institutional trust, custodial and asset administration services, among other specialisations. We now have a nucleus of a dynamic and balanced team capable of meeting the agenda for 2005. This team gives us the confidence and capability to begin building the “deal pipeline” that will move the business from a series of discrete prospective transactions to a continuous process of referral and introduction through negotiation and delivery to market. RAYMOND CAMPBELL Executive Director – Capital Markets Importance of the CSME The creation of a regional economic bloc, the CARICOM Single Market and Economy (CSME), recognises the need for strength through consolidation. The CSME reinforces <strong>FirstCaribbean</strong>’s strategy as a financial provider offering regionally based services, especially capital market products. Furthermore, the CSME serves our individual states as a larger “own market” and is expected to provide mutual support as a larger and stronger entity in the imminent Free Trade Area of the Americas. Delivering Product The acquisition of the Mercantile <strong>Bank</strong>ing and Financial Corporation gives us the platform on which to establish a presence in Trinidad and Tobago, our 16th country. We are very pleased to be able to partner with such a respected institution as The Mercantile to launch our business in this jurisdiction. Our financial strength, pan-Caribbean reach, range of services and international links with shareholders Barclays and CIBC will be well suited to Trinidad and Tobago’s diverse financial services sector. Trinidad’s vibrant energy sector and ambitious manufacturing, insurance and multinational corporations provide excellent prospects for our Capital Markets business. Over the year just ended, we launched in three of the five main markets: The Cayman Islands, Jamaica and Barbados. These were very well received, and we expect to complete the regional network when we launch in Trinidad and the <strong>Bahamas</strong> early in the new year. We have offices in Jamaica and Barbados; and we will have an office in Trinidad and Tobago following the completion of the acquisition of the Mercantile <strong>Bank</strong>ing and Financial Corporation. Seeking Prospects We believe that Caribbean governments, and a cadre of ambitious and aggressive indigenous corporate entities, have the capability to guide their countries and corporations, as well as our region, into the future. We believe that the region has the capacity to compete anywhere in the world; to face the challenges and complexities of globalisation, and to win. The strategy to achieve this must include leveraging our collective synergies, and producing economies of scale across the region. LLOYD SAMAROO Executive Director Designate – Capital Markets In 2005, our expanded human resources must be matched with further internal spending to develop our infrastructure (product, processes and policies). Our task for the coming year will be to build the “deal pipeline”, with a focus on people, products and prospects. I will be leaving <strong>FirstCaribbean</strong> <strong>International</strong> <strong>Bank</strong> at the end of February 2005. I value very much the eight years I have spent with the <strong>Bank</strong>, years that have witnessed important transformations, most notably from CIBC to <strong>FirstCaribbean</strong>. For over two years, I have held the responsibility for leading both the Capital Markets business and the Jamaica country team. It has been my pleasure to have played a role in building the <strong>Bank</strong> and I wish my successors and colleagues of the Executive Management Committee the very best in the future. At the time of printing the responsibility for Capital Markets has passed to Lloyd Samaroo. 33