By Andrew Green, Staff Reporter

FIRSTCARIBBEAN International Bank (FCIB) on Wednesday launched its Capital Markets operations in Jamaica.

The Capital Markets business has been structured to cater to the needs of Jamaican and regional entities to become more competitive and efficient, said Raymond Campbell, executive director of the operations. He was speaking at a press briefing at the Hylton Hotel in St. Andrew on Wednesday.

"It is a significant move towards satisfying the capital sourcing requirements of both public and private sector entities," said Jennifer Carty-Peart, director of capital markets in the bank's Jamaican operations. She described it as the start of a new and exciting phase of FirstCaribbean's business.

OTHER LAUNCHES

The division was launched in Cayman last week and other launches will follow in The Bahamas, Barbados and Trinidad.

"The creation of this segment is aligned to expanding the earnings of the bank," Mr. Campbell said. The bank's Corporate Markets business now provides 40 per cent of the profits the corporate segment of the bank's operations and about 15 per cent of existing income of its overall regional business.

"There were more clients fitting the profile not banking with us than those who were banking with us," he said. FirstCaribbean has developed a profile of the entities that would most appropriately be able to take advantage of these services.

A second factor is that, "unless we develop the capabilities within our institution, (existing clients) will do more business with our competitors," he said. "The products and services we offer become increasingly important in an environment of accelerated pace towards regional integration and the impact of the Free Trade Area of the Americas."

SERVICES

The Capital Markets division provides a host of services, from assisting in mergers and acquisitions to project financing, debt underwriting and securitisation. Other services include foreign exchange trading, swaps, options, equities trading among others.

"The strategy plan for the business is being presented to the board of directors," he said. That board meeting was to have been held already, but was delayed by the disruption caused by Hurricane Ivan.

The Capital Markets division will operate from two regional centres, one in Kingston to service the northern Caribbean and the other in Barbados to serve the southern Caribbean. As executive director, Mr. Campbell has overall responsibility for the operations.

"That plan calls for the Capital Markets business in a five-year period to deliver a very significant uptick in the overall plans for profitability," he said. It is already playing an increasing role in the bank's profitability.

"The birth of FirstCaribbean International Bank came about through the conception of our heritage banks, CIBC and Barclays almost three years ago," said director Albert Webb. "We have nurtured FirstCaribbean into a bank of strength, financial know-how, and of respect within the Caribbean," he concluded.

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