As placement agents CFAL and Providence Advisors Limited begin the task of returning around $35 million to the Bahamian public, Bank of the Bahamas (BOB) has launched a campaign to highlight attractive fixed deposit accounts for Bahamians saving for the future.
APD Limited's wildly successful $10 million initial public offering (IPO) shows there is a demand for reliable investment vehicles, according to Paul McWeeney, the managing director at BOB.
With this in mind, the financial institution is marketing attractive rates in the hopes of flowing some of those dollars into its coffers.
BOB is offering up to 5.2 percent return on 10-year fixed deposit accounts.
McWeeney said the philosophy is mainly about building not only a strong bank, but a strong nation.
"The point about it is it gives opportunities for Bahamians on both ends," he told Guardian Business. "It creates a healthy appetite and opportunity for consumers. We have the ability to turn it over and give back to the public in a productive fashion. Everyone wins at the end of the day."
Whether young people out of college are seeking a safe investment vehicle for buying a home, or investors are simply searching for a decent return, BOB said it anticipates more activity in this long-term investment option.
"A lot of banks think in quarters. We have a more long-term approach of national development," he added.
Similarly, McWeeney announced to Guardian Business yesterday that BOB hopes to roll out an e-commerce platform within the next six months.
BOB is currently in the testing phase, but intends on holding a public seminar with the Bahamas Chamber of Commerce and Employers Confederation to educate Bahamians on its benefits.
Security and guarding against fraud remains one of the bank's chief concerns.
In regards to APD Limited's IPO, McWeeney said the bank was pleased to work with CFAL and Providence as a depot to collect the applications and forward them on. When it comes to national development, he said, BOB is eager to be part of such initiatives.
"It not only helps the country and helps the community, there are also opportunities for business from that," he noted.
With such an impressive over-subscription, the bank is rolling out more targeted marketing at those clients to look at BOB as an investment alternative.
"We can hopefully get some of that money into this institution," he told Guardian Business.
CFAL and Providence are returning the $35 million or so to around 4,000 shareholders, or around 40 percent of all applications.
Kenwood Kerr, the CEO of Providence, said more than 95 percent of those that applied to the IPO were individual investors.
He said it was "quite the endorsement" not only of APD Limited's business model, but an indication that capital markets and interest in quality companies is still alive in The Bahamas.

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