About FINCOR

Republic Finance and Merchant Bank Limited (FINCOR) is a fully owned subsidiary of Republic Bank Limited, licensed to operate as a merchant bank, mortgage institution, confirming/acceptance house, finance house/finance company and leasing corporation.

Incorporated in 1971, FINCOR has two wholly owned subsidiaries, London Street Project Company Limited and The Botanical Gardens Project Company Limited. It provides its services through six (6) agencies in Trinidad & Tobago and through its Eastern Caribbean office in Grenada.

Throughout the years, FINCOR achieved phenomenal growth and expansion in an ever-changing economic environment. FINCOR established and maintained the dominant position in the non-banking financial sector, primarily through its creativity, innovation, sound technical and financial skills and its distinct ability to meet the needs of a diversified clientele.

In 2002, FINCOR maintained its dominant position in all business sectors, even in an environment characterised by political uncertainty, cautious business activity and falling interest rates.

The FINCOR Group continued to make a significant contribution to Republic Bank Group's pre-tax profitability as it again achieved a major milestone in 2002, recording a pre-tax profit of $125.4 million, up $32.6 million (35%) over the 2001 figure of $92.8 million. Net profit after tax grew by 30% to $102.2 million. These results have produced a return on average shareholder's equity of 32.9% (2001-34.8%), with a return on average assets of 3.44% (2001-2.65%). These outstanding results were achieved mainly through FINCOR’s management and staff’s commitment to the mission statement, “a dynamic, flexible, customer-driven organisation successfully providing distinctive service.”

FINCOR has been recognised as the leader in regional capital market activity, with over 30 years’ experience in arranging many of the government debt issues and long term corporate financing. To date, FINCOR has arranged approximately $16 billion in bonds, notes and various corporate financing instruments to finance projects for governments in Trinidad and Tobago and the Eastern Caribbean and for the corporate sector. In 2002, FINCOR arranged over $1.2 billion in financing for medium and long-term borrowers. FINCOR successfully sold 100% of $1.2 billion in capital market issues. FINCOR also placed 64% of the total TT$ issues in the market through merchant/investment banks. Regionally, FINCOR realised successful bond issues for the Grenada Electricity Services Company (EC$50 million) and the government of Grenada (EC$27 million).

In 1996, FINCOR realised that the traditional bank loan may not always satisfy its customers' needs. It therefore introduced leasing into its product mix and established a division to deal exclusively with customers who choose to use lease financing instead of other forms of financing. FINCOR's Leasing Division ended its sixth year of operation with a 64% market share and was able to retain its leadership position in the market through successfully servicing the needs of both corporate and government clients and providing leasing facilities for industrial equipment, motor vehicles, office machinery and medical equipment, among other types of assets.

Since 1971, FINCOR has been actively involved in mortgage financing and administration and has consistently led the way in promoting home ownership. FINCOR has worked with the government in developing the Preferential Rate Mortgage Plan which enables lower income earners to access financing to own their homes. Fiscal 2002 was a very dynamic year for FINCOR Mortgages Division. The Division saw extensive growth in the commercial sector, with mortgages increasing to approximately $1.2 billion. FINCOR has successfully managed mortgages for its won account as well as accounts of other clients in the marketplace.

Project financing is one of the most innovative instruments pioneered by FINCOR during the period 1984-1994. Since it was first introduced, FINCOR developed BOLT (Build Own Lease Transfer), BOO (Build Own Operate) and BOOT (Build Own Operate Transfer) types of project financing in the Caribbean. FINCOR's Project Financing Division continues to facilitate the financing of a wide range of public and private sector projects including hospitals, schools, offices, housing, airports and port expansion. Some local projects include the International School of Port of Spain, the Trincity Secondary Schools, the Ministry of Works and Transport Headquarters, the Unit Trust Head Office and the Trinidad and Tobago National Library. Regionally, the division has been involved in the Grenada Ministerial Complex, the Grenada Spiceland Shopping Mall Complex and a modern 8,000-seat national cricket stadium in St. Lucia.

Despite a highly competitive environment, FINCOR has been able to maintain its business momentum by providing innovative financial solutions and prudent financial management. FINCOR remains proud of its accomplishments for 2002. It is also cognisant that the road ahead is filled with challenges and opportunities to partner with governments of the region to aid in nation building and to create stronger infrastructural development initiatives.

The principal types of business undertaken by FINCOR are:-

1. Accepting medium and long-term fixed deposits
2. Accepting short-term deposits from institutional investors
3. Providing medium and long-term finance
4. Providing mortgages through its own funding and on an agency basis
5. Providing consortium/syndicated loans
6. Leasing and project financing
7. Managing and arranging issues of marketable securities
8. Floating and underwriting stock, shares and bonds
9. Managing of stock and bond registers
10. Providing corporate advisory services