Govt. pension fund invested $30m in Butterfield
The Bermuda Government Pension Fund invested $30 million in the Butterfield Bank recapitalisation deal, the Finance Ministry revealed yesterday.
Financial Secretary Donald Scott said the investment represented The investment represented 1.87 percent of the public pension funds under management.
Mr. Scott said: "The investment recommendation of the Public Funds Investment Committee (PFIC) to the Minister of Finance was based on a thorough review of the extensive due diligence conducted by the lead investors, namely, The Carlyle Group and the Canadian Imperial Bank of Commerce, and intensive follow-up discussions with these investors."
The PFIC concluded the underlying banking business was sound and the problems were [JUMP]<*L*p(0,0,0,10.5,0,0,g)><*t(0,0," ")>
The committee recognised opportunities for significant increases in investment income and believed the transaction price was attractive.
"Projected returns on the contemplated investment were well above the actuarial minimum rate of return for the funds under management," Mr. Scott added.
The main investors were the Carlyle Group and the Canadian Imperial Bank of Commerce, who each invested $150 million into newly issued Butterfield equity.
