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Caribbean Business Journal - Business and Travel News

Caribbean Business Journal, a business magazine serving the Caribbean Community Around the World, Small Business Success, Travel, Economic News, Management, Finance, Diversity News, Events
 
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Bermudian Bank Gets $213 Million Financial Aid
Bermuda’s Bank of N.T. Butterfield is receiving $550 million from institutional investors after the bank announced a loss of $213 million from last year.

Officials at the bank, which is Bermuda’s oldest financial institution, made the announcement on Tuesday. The bank has also said it has replaced chief executive officer Alan Thompson with chief financial officer Bradford Kopp taking over that position.

The bank said funds affiliated with the Carlyle Group, Canadian Imperial Bank of Commerce (CIBC) and other institutional investors have invested $550 million in new Butterfield equity. Other investors include the Welcome Trust, the Bermuda Government Pension Funds and Goshen Investments, LLC.

Butterfield, which is the second largest bank in Bermuda after the HSBC-owned Bank of Bermuda, said it would also offer its existing shareholders the chance to buy $130 million of new equity.

Finance Minister Paula Cox said in a statement: "The ministry is pleased that the commercial resolution was concluded in a manner that considerably strengthens the bank's capital base. The $550-million injection of new capital enables the bank to de-risk its balance sheet and positions it for a reasonably quick return to profitability.

The bank, whose overseas operations include branches in the Bahamas, Barbados and the Cayman Islands, said its Bermuda segment alone posted a net loss of $208.4 million last year. It announced it had suspended dividend payments on common shares until the bank returns to a position of sustainable profitability.

The Bermuda Stock Exchange suspended trading on Butterfield's common shares on Tuesday morning after they dipped below $3.
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HIGHLIGHTS  
Around the Region

Caribbean Community (CARICOM) Chairman, Honourable Roosevelt Skerrit, Prime Minister of Dominica is confident that the forging of “a new ...

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Caribbean Spotlight

In the mind of Monique Hamaty-Simmonds, there is a strong bond between her business,...

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Management

Before you begin looking for financing, you should be prepared with a business plan that builds a strong case as to why someone should finance your business.

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Global Outsourcing

Outsourcing of manufacturing processes provides many US-based women and minority companies with highly competitive operational ...

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SPECIALS FEATURES  
U.S. Coast Guard Sends Back Over 300 Haitians

The U.S. Coast Guard announced on Aug. 2 that it had sent back 323 Haitians after their overcrowded boats were stopped in Bahamian waters.

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World Bank to Disburse US$55 Million to Help Haiti Meet Urgent Financing for Reconstruction

The World Bank announced today that it will disburse US$55 million to Haiti which will help the Caribbean nation address some of its most urgent financing needs...

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Cayman Shines in Singapore

Cayman’s Youth Olympic team got off to a good start in Singapore on Sunday (15 August) with swimmer Lara Butler managing a personal best in the woman’s 100m backstroke.

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Unity and Action, Demands in the Fight Against Crime : FCH

President Felipe Calderón declared that now is the time to implement agreements between the three orders and branches of government and society in general regarding crimefighting.

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