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Fidelity Bank & Trust and Royal Bank of Canada announce
merchant banking joint ventureRoyal Fidelity Merchant Bank & Trust to begin operations
in The Bahamas and Barbados
NASSAU, April 17, 2007 — Fidelity Bank &
Trust International Limited (Fidelity) and Royal Bank of Canada
(RBC) (RY on TSE and NYSE), today announced the signing of
a definitive joint venture agreement pursuant to which RBC
will acquire a 50 per cent interest in Fidelity's wholly owned
Bahamas-based subsidiary, Fidelity Merchant Bank & Trust
Limited. The transaction is subject to normal closing conditions,
including receipt of all necessary regulatory approval, and
is expected to be completed within the next three months.
The joint venture is intended to be called Royal Fidelity
Merchant Bank & Trust Limited (Royal Fidelity) and will
provide corporate finance and advisory, investment management,
stock brokerage, share registrar and transfer agency, pension
and mutual fund administration services to existing and new
clients throughout the Caribbean.
RBC will transfer its Barbados investment management and
trust business to a Barbados subsidiary of Royal Fidelity
upon receipt of local approvals and licenses. Upon closing,
Royal Fidelity will operate in The Bahamas and Barbados with
assets under management and administration in excess of US$1
billion, with plans to open offices elsewhere in the Caribbean.
Michael Anderson, president of Fidelity Merchant Bank &
Trust, will be president of Royal Fidelity. Both RBC and Fidelity
will continue to operate their current retail banking and
other businesses in the region under their respective brands.
Anwer Sunderji, chairman and CEO of Fidelity, said, "This
transaction validates our strategy in deploying resources
to build our merchant bank subsidiary, which has established
itself as the leading investment advisor and wealth management
institution in The Bahamas. Innovative products, solid advice
and unparalleled service have been key to Fidelity's success.
Through this transforming partnership with Royal Bank of Canada,
Royal Fidelity will gain access to significant financial and
technical resources that will enable it to grow rapidly within
and outside The Bahamas."
"This transaction extends RBC's growing financial services
platform in the Caribbean, giving even greater access to the
fast growing merchant banking and corporate advisory sector
in the region," said Ross McDonald, head of Caribbean
banking, RBC. "We are impressed with Fidelity's merchant
banking operations and view this transaction to be strategically
important to our expansion plans in the Caribbean."
Royal Fidelity will be well positioned to take advantage
of the growing number of investment and financing opportunities
arising across the Caribbean. "The Bahamas, Jamaica,
Trinidad and Barbados have been centres of several large mergers,
acquisitions and related capital markets transactions in recent
months and the expectations are that this trend will continue,"
Anderson said.
The combination of RBC and Fidelity establishes a one-stop
solution for medium- to large-sized corporate finance engagements.
Royal Fidelity clients will now be able to obtain corporate
finance services as well as corporate banking products, such
as bridge loans, project finance, and term loans, along with
wealth management and fiduciary services.
"Clients of the new Royal Fidelity joint venture will
benefit from RBC's financial strength and extensive experience
and capabilities in global capital markets and Fidelity's
innovative corporate finance and successful wealth management
experience," Anderson said.
About Fidelity
Headquartered in The Bahamas, Fidelity Bank & Trust International
Limited heads a financial services group offering a comprehensive
range of both domestic and international banking, insurance
and other financial products and services in The Bahamas,
the Cayman Islands and the Turks & Caicos Islands through
10 financial centres, served by over 200 employees.
About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name of RBC. We are Canada's
largest bank as measured by assets and market capitalization
and one of North America's leading diversified financial services
companies. We provide personal and commercial banking, wealth
management services, insurance, corporate and investment banking
and transaction processing services on a global basis. Our
corporate support team enables business growth with expert
professional advice and state-of-the art processes and technology.
We employ approximately 70,000 full- and part-time employees
who serve more than 14 million personal, business, public
sector and institutional clients throughout offices in North
America and 34 countries around the world.
Royal Bank of Canada has a longstanding presence in The Bahamas,
with operations dating back to 1908. Today, it boasts a retail
network of 23 branches throughout New Providence and the Family
Islands, a commercial banking business centre, and 37 automated
banking machines.
Royal Bank of Canada currently operates
42 branches, four business centers and 68 automated banking
machines in eight Caribbean countries, with more than 1300
employees across the region, including The Bahamas.
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Media Contacts:
RBC
Nassau
Jan Knowles
(242) 356-8796
jan.knowles@rbc.com
Toronto
Jackie Braden
(416) 974-2124
jackie.braden@rbc.com
Fidelity Bank & Trust
Nassau
Serena Williams
(242) 356-7764 ext 3143
serena.williams@fidelitybahamas.com
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be
deemed to be forward-looking statements under certain securities
laws, including the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act
of 1995 and in any applicable Canadian securities legislation,
and Royal Bank of Canada (RBC) and Fidelity Bank & Trust
International Limited (Fidelity) intend that such forward-looking
statements be subject to the safe-harbor created thereby.
The words "may," "could," "should,"
"would," "suspect," "outlook,"
"believe," "plan," "anticipate,"
"estimate," "expect," "intend,"
"forecast," "objective" and words and
expressions of similar import are intended to identify forward-looking
statements.
By their very nature, forward-looking statements involve
numerous assumptions, and inherent risks and uncertainties,
both general and specific, and risks exist that predictions,
forecasts, projections and other forward-looking statements,
including statements about the joint venture between Fidelity
and RBC, will not be achieved. We caution readers not to place
undue reliance on these statements as a number of important
factors could cause our actual results to differ materially
from the beliefs, plans, objectives, expectations, anticipations,
estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to
the possibility that the proposed joint venture does not close
when expected or at all because required regulatory, shareholder
or other approvals are not received or other conditions to
the closing are not satisfied on a timely basis or at all,
that RBC and Fidelity may be required to modify the terms
and conditions of the proposed joint venture to achieve regulatory
approval, or that the anticipated benefits of the joint venture
are not realized as a result of such things as the strength
of the economy and competitive factors in the areas where
the joint venture will do business; the impact of changes
in the laws and regulations regulating financial services
and enforcement thereof (including banking, insurance and
securities); judicial judgments and legal proceedings; RBC
and Fidelity's ability to complete the joint venture successfully;
reputational risks, and other factors that may affect future
results of RBC and Fidelity including changes in trade policies,
timely development and introduction of new products and services,
changes in tax laws, and technological and regulatory changes.
We caution that the foregoing list of important factors is
not exhaustive.
RBC and Fidelity assume no obligation to update the forward-looking
statements contained in this press release.
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