PARAMARIBO: The Trinidad-based Republic Bank Limited (RBL) has announced that it is acquiring the Suriname operations of the Royal Bank of Canada (RBC), subject to all regulatory approvals.
It said the acquisition is part of RBL’s purchase of Royal Overseas Holdings (St. Lucia) Limited, at an estimated cost of US$39.8 million.
RBL’s Managing Director, David Dulal-Whiteway, said the acquisition is part of his bank’s regional expansion strategy and, once completed, will expand RBL’s presence in the Caribbean to eight territories.
“As a Caribbean-based bank, we are always on the lookout for opportunities in the Region. Suriname’s diverse and stable economy makes it an attractive investment territory and one that we have been desirous of entering since 2012.
“We view this opportunity to acquire Suriname’s third largest bank as a solid entry point into that market. We are excited about the prospect of this acquisition as we work toward achieving our vision as the Caribbean Financial Institution of choice,” Dulal-Whiteway said in a statement.
RBC Royal Bank (Suriname) N.V. operates a network of six branches with assets of approximately US$525 million.
The transaction will be accretive to RBL shareholders and upon completion of the acquisition, Republic Bank intends to rebrand the newly acquired subsidiary in Suriname.
“Following a thorough and careful review of RBC’s Suriname operations, we concluded that the best decision for the long-term future success of the operations was to sell it to a strategic buyer with interest in building a presence in Suriname,” said Head of RBC Caribbean Markets, Rob Johnston. “Republic Bank, which also has operations in neighbouring Guyana, is exactly such a partner.”