The transaction will create one of the most expansive banking networks in the Caribbean, with a presence in 18 countries and territories across the region. With more than US$13.7 billion in assets, the combined operations will have 130 branches across the Caribbean, with more than 6,900 employees serving more than 1.6 million clients. RBC’s expanded Caribbean retail banking operations will ultimately be headquartered in Trinidad and Tobago.

“This is a transformational acquisition for RBC in the Caribbean, one that extends our reach into many important markets, notably Trinidad and Tobago, Jamaica, and the Dutch Caribbean,” explained Peter Armenio, RBC’s head of US & International Banking. “RBTT provides RBC with extensive local insight and leadership in markets where we have little or no presence while significantly advancing our strategy to grow outside Canada."

“RBTT is a perfect complement to RBC’s current footprint,” Armenio added. “We both share a history of serving customers throughout the Caribbean and have almost no overlap of our respective branch networks.”

"This historic transaction provides a great opportunity for both companies” added Peter July, RBTT Group Chairman. “RBC’s financial strength and depth of expertise combined with RBTT’s market knowledge and position in the region provides the perfect foundation for us to continue growing and competing effectively within the Caribbean Basin and beyond."

“RBTT shareholders will benefit by having the opportunity to improve significantly the liquidity of their investment and own a portion of the largest bank in Canada and a leading global financial services institution,” July continued.

“The benefits of this transaction also go well beyond the shareholders and employees of both companies,” July went on to state. “This transaction sets the stage for Trinidad and Tobago becoming the financial center of the Caribbean.”

The headquarters of RBC’s Caribbean retail banking operations will be located in Port of Spain. “We want our Caribbean headquarters to be located in what is a key financial center for the region as well as a logical jumping off place for potential growth outside the Caribbean,” Armenio said.

“This deal creates a significantly larger organization that is better positioned to serve all our customers, who will benefit from the expanded market coverage, the increased lending capacity of the combined banks and an expanded range of products,” noted Suresh Sookoo, RBTT Group CEO.

The acquisition marks RBC’s return to Trinidad and Tobago, where it had maintained operations from 1902 to 1987. As a consequence of this proposed transaction, RBC will explore the possibility of issuing depositary receipts backed by RBC common shares on the Trinidad and Tobago Stock Exchange. “Making depositary receipts available in Trinidad and Tobago would further demonstrate our commitment to the region while giving local investors a chance to invest in the growth of one of the best performing financial services companies in the world,” Armenio explained.

RBTT is RBC’s second international acquisition in the past month, and the ninth acquisition RBC has announced outside Canada in the past 12 months. “We are committed to growing our business outside Canada and we will continue pursuing suitable opportunities to build on our existing businesses through organic means as well as acquisitions,” Armenio revealed.

The deal is subject to closing conditions, including approval by regulators and RBTT shareholders, and other conditions described in the information circular to be mailed to RBTT shareholders.

RBTT is a Caribbean-owned banking and financial services group which offers a range of banking and financial intermediation services to customers in Trinidad & Tobago and the Caribbean.

The RBTT Financial Group includes ten commercial banks with branches located throughout the English-speaking Caribbean, Suriname, the Netherlands Antilles and Aruba.

The Royal Bank of Canada and its subsidiaries operate under the master brand name of RBC. RBC is Canada’s largest bank as measured by assets and market capitalization and one of North America’s leading diversified financial services companies.