NASSAU, Bahamas — Bahamian financial providers were yesterday told to “prepare themselves” for increased competition after a prominent Jamaican group with over $1bn in total assets unveiled plans to establish a physical presence here, The Tribune reported on Friday, October 14, in an article written by Business Editor Neil Hartnell.
Proven Group Ltd, which is supplying the $20m financing for the Government’s 365-lot Renaissance at Carmichael housing subdivision, told shareholders at its recent annual general meeting (AGM) that it has been “creeping into The Bahamas” and is now ready to set up a “bricks and mortar” presence.
Christopher Williams, president and chief executive of Proven Management, the entity that manages Proven Group, was quoted by Jamaican media as saying the company already has “a great relationship” with Prime Minister Philip Davis KC and his Cabinet ministers.
“Within the three platforms, Proven Wealth Jamaica is well-known, well-established and has been creeping into The Bahamas. So, we have been flying in, building relationships and we’re looking now to establish brick and mortar on the ground in Bahamas,” Mr Williams was reported to have said.
Asked about the state of the Bahamian economy, he further replied: “It’s rebounding very well. The international banking space in The Bahamas is very strong, the real estate space is strong and, of course, the tourism space is strong. We like the economy, and so the Prime Minister and his ministers have been very welcoming to us. We have a great relationship with them.”
Proven Group has strong political connections in Jamaica. One of Proven Management’s co-founders and a current director, Mark Golding, is leader of Jamaica’s principal opposition party, the People’s National Party (PNP), while another co-founder and fellow director, Peter Bunting, served alongside him in the last of Portia Simpson-Miller’s Cabinets.
Another co-founder and director of both Proven Group and Proven Management, Garfield ‘Garry’ Sinclair, is former chief executive at the Bahamas Telecommunications Company (BTC). This newspaper also saw photos earlier this year of Mr Davis meeting Mr Golding in Jamaica while attending the CARIFTA track and field championships.
Jobeth Coleby-Davis, minister of housing and transport, accompanied the Prime Minister on the trip, and visited Jamaican low-cost housing developments while there. It is likely that the Renaissance arrangements were discussed at that time. The Progressive Liberal Party (PLP) also views the PNP as akin to its sister political organisation in Jamaica.
Proven’s plans further highlight growing interest by Jamaican finance houses and investment houses in the Bahamian economy and funding projects here. Besides Proven’s involvement with Renaissance, which was facilitated by Bahamas-based Simplified Lending headed by Robert Pantry, another Jamaican financial player, Sygnus Capital, has recently funded two public-private partnership (PPP) deals in this nation.
Along with the $25m in financing it has provided to Bahamas Striping Group of Companies’ subsidiary, Caribbean Pavement Solutions, to fund road projects in Exuma, Sygnus also previously raised $9m for the completion of the Government administrative complex in Eight Mile Rock, Grand Bahama. That took its total Bahamas exposure to some $34m.
The Davis administration will likely interpret Proven’s plans as a vote of confidence in the Bahamian economy and financial services market. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, who dealt with Proven when selling the BISX-listed institution’s Cayman banking subsidiary to the Jamaican group, said local providers should embrace the challenge of extra competition.
“It may mean they have greater interest in more things in The Bahamas. That’s not a bad thing,” he told Tribune Business of Proven’s plan to establish a physical presence. “We have to welcome this type of thing. Why would we be afraid of the competition? Let’s be mindful of it, and those participating in the space should prepare themselves.” See complete article in The Tribune at http://www.tribune242.com/news/2022/oct/14/proven-competition-jamaica-group-targets-bahamas-m/
