By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian bank's new owners yesterday said they aim to expand its assets under administration to $1.5bn within two years and pledged to become "a standard bearer" for the jurisdiction.

The Lucayas Group, in a series of written replies to Tribune Business questions, said Private Investment Bank (PIB) will be rebranded under their name as they move to buck the trend of international institutions either exiting or divesting their Bahamian interests.

Promising that the re-named Lucayas Bank will reflect the new ownership's commitment to The Bahamas, the group said it was already eyeing a tourism industry investment that could create "at least 75 full-time jobs" separate from the 24 staff it has inherited with the PIB deal.

Describing itself as a PB client for many years, the Lucayas Group said it was invited to bid to acquire 100 percent of the Queen Street-based bank from its previous owner, Banque Cramer. While the sales process took nine months, and was delayed by the COVID-19 pandemic, the deal has received the necessary Central Bank approvals to give the new owners the Bahamian platform they seemingly crave.

"Because of the footprint of the group, but also the important network of the same, the group thought it could be the ideal solution to consolidate business in a business-friendly and stable environment such as The Bahamas," Lucayas Group said of the acquisition, while declining to reveal a purchase price or any of the sale terms.

"The group is looking into growing its interest in The Bahamas as well as looking for new minority Bahamian partners, and hopes to expand further its Bahamian economic partnerships in future..... There are currently 24 staff in the bank. The target is to grow assets under management to $1.5bn in the next two years.

"This is perceived to be a realistic ambition given the pipeline of clients which exists, as well as new commercial hires and assets under management acquisition through additional purchases. While other banks are leaving or divesting from The Bahamas, we are heavily committed to growth."

The Lucayas Group declined to reveal much about the identity of its major or controlling shareholders, only saying that its various companies have been operating for up to 20 years and the principal stakeholder is "an Anglo-Irish and American family trust with other individuals holding minority stakes".

John Bostwick acted as the Lucayas Group's Bahamian attorney in the transaction, and the bank's Board of Directors now includes fellow attorney Raynard Rigby; Mr Bostwick's sister, Senator Lisa Bostwick; and James Smith, former minister of state for finance and Central Bank governor. Marco Netzer remains as chairman, and Edward Lynch joins as vice-chairman.

The Lucayas Group purchase promises to bring much-needed stability to PIB, which next year celebrates its 40th anniversary after being founded in 1982. Banque Cramer previously thought it had disposed of a majority 85 percent stake in the Bahamian institution to IPG Securities Asset Management (Bahamas), and its principals, Carlos Molina and Jorge Carreras, in 2018.

However, the Central Bank subsequently demanded that Mr Molina resign from the bank’s board and dispose of his equity stake in PIB, plus any “affiliate businesses” in which the bank had an interest, by March 31 last year - a move that was upheld by the Supreme Court despite Mr Molina's protestations.

This forced Banque Cramer to place PIB back on the market and seek a fresh purchaser. "The Board of Directors have crafted an ambitious but realistic relaunch plan, and the bank can turn its attention from preservation and consolidation for sale to growth," Lucayas Group told this newspaper.

"During this sale process the former Board took positive and productive steps to align systems, technology and business processes to prepare for the growth strategy, and so one could say the bank is actually in great shape and ready to be relaunched."

It added: "The Lucayas Group, its principals and partners are committed to contributing to The Bahamas both economically and by being a standard bearer for Bahamian excellence. The group believes that The Bahamas is a nexus of opportunity with important links to the UK, the US as well as having fostered an independent and growing relationship with the Far East.

"It is stable from a political perspective and, in addition, has substantial ambassadorial presence from the aforementioned foreign nations coupled with an attractive fiscal policy. Lucayas Group will invest in tourism with a current project that could generate at least 75 full-time jobs in addition to those slated for addition to PIB. Separately, the group will enhance its funds offering and its technology investments on-island."

Despite the economic devastation inflicted by COVID-19, PIB's new owner added: "Lucayas believes that there is a perversely positive trend emerging. The group is already fielding many inquiries from industry leaders and professionals abroad who are interested in establishing a base in paradise.

"Access to decent communications, the advantages of a skilled workforce and a positive attitude towards business, as well as its unique proximity to everywhere, make The Bahamas a great choice."