News Feed

October 22, 2016 - St James man nursing stab wounds One woman is assisting police with ... +++ October 22, 2016 - Teen remanded Eighteen-year-old Adam Harris of En ... +++ October 22, 2016 - St Michael man on firearms, ammunition charges St Michael resident, Jeffrey Willia ... +++ October 22, 2016 - Police probe Wildey fire Police are investigating a fire whi ... +++ October 22, 2016 - Intrigue among Barbados Pride With the start of the 2016-17 West ... +++ October 22, 2016 - Water hope Relief could soon be on the way for ... +++

Money swap success


Scotiabank Managing Director, Sean Albert

In what is being described as an unprecedented success, Scotiabank and the Caribbean Development Bank has announced the closure of a US $103 million interest rate cross currency swap transaction.

The transaction includes funding rates on the novation. This has been heralded as a win/win for both financial institutions and will allow CDB to continue to prudently manage its financial liabilities.

For this transaction, CDB needed to partner with a financial institution with a strong credit rating and Scotiabank’s rating (AA-) has remained unchanged since 2008, despite the global economic downturn. The deal was structured by a Scotiabank team comprising local corporate banking and treasury and the New York-based Scotiabank, Global Banking and Markets.

On the ground, the Scotiabank team, led by Managing Director Sean Albert, worked closely with the finance and legal staff at CDB to close the transaction.

This deal is one of the largest transactions closed by the Scotiabank Global Banking and Markets division and one which showcased Scotiabank’s investment banking capabilities and commitment to regional development institutions.

Albert said: “We worked collaboratively with CDB and in conjunction with our Global Banking and Markets partners to deliver for the first time in our banking experience something on this scale in the Caribbean, for the Caribbean Development Bank. I am exceptionally pleased that we were able to complete such a complex deal we look forward to doing similar wholesale transactions in the future.”

President of CDB, Dr. Warren Smith, said: “This will enable CDB to maintain an efficient hedge of foreign exchange exposure in our borrowing portfolio and will also assist with our continuing efforts to minimise borrowing costs so that our lending rate can remain affordable for our clients. We wish to thank the Scotiabank staff and the members of our own staff who worked to successfully conclude this transaction.”

Leave a Reply

Your email address will not be published. Required fields are marked *