move aimed at gaining access to markets in Asian and South African markets.

BCB (Mauritius) Ltd., incorporated last week as a company with trust and custodial powers, is the first subsidiary ever opened by Commercial Bank outside Bermuda.

"The subsidiary was primarily established to provide custodial services for mutual fund clients investing in Asian equities,'' according to a release from the bank.

"Mauritius has negotiated a number of extremely advantageous double tax treaties with China, India and South Africa. In addition, Mauritius has been quick to develop an impressive offshore financial centre,'' said Commercial Bank managing director Ms Audette Exel.

Where double tax treaties exist, tax will be paid in either country but not both. Mauritius has been very active in establishing these treaties in connection with trade.

"We had looked at a number of alternatives -- at this time Mauritius stood out as the right jurisdiction,'' commented Ms Exel.

The new venture, discussed by Commercial Bank for about five months, will be supervised by the Bermuda custody department and the operation will be monitored quarterly, she said.

"BCB aims to assist its clients by providing a one-stop shopping service for business in Mauritius and thereby affording them the opportunity to take advantage of those unique benefits,'' she added.

Commercial Bank's global custody general manager, Ms Sheila Dickinson, said: "In the custody area we have become aware that a number of our mutual fund clients would benefit from the ability to use BCB as an offshore custodian in Mauritius. In response to those needs, we have established a strong foothold in the Asian custodial markets.'' Commercial Bank, catering to high net worth clients, currently has more than $3 billion in assets under administration and custody, and is negotiating on a $50 million South Asian mutual fund.

The opening of a Commercial Bank subsidiary represents a growing Bermuda presence in Mauritius.

The Bank of Bermuda earlier this year opened Bermuda Trust (Mauritius) Ltd.

The company acts as trustee, custodian and administrator for investment companies and mutual funds, particularly with respect to investment in India and countries around the Indian Ocean rim.

"BCB believes there is a natural link between Bermuda and Mauritius -- Bermuda has a quality reputation and stature which is the envy of all other offshore jurisdictions; Mauritius has a set of double tax treaties and is conveniently located Asian time zone. Together, the jurisdictions offer multiple advantages for clients wishing to invest, particularly in Asia or in Southern Africa,'' said Ms Exel.

Mauritius, independent since 1968, is located in the Indian Ocean east of Madagascar.