FOR THE FIRST TIME in local banking history, the Bank of Nova Scotia (Scotiabank) has injected a significant amount of money into registered offshore bank Cidel Bank and Trust to take a minority stake in the international bank's operations.

Scotiabank's international public relations office said the transaction was made through the bank's private equity investment arm, which has a global investment mandate to finance growing private companies.

Cidel president Adrian Meyer told BARBADOS BUSINESS AUTHORITY that Scotiabank already had minority interest in South American banks but their stake in Cidel was the first of its kind.

"To our knowledge this is the first time Scotiabank has invested in a Barbadian institution," he said.

Cidel administers US$3.3 billion in client assets and has offices in Bermuda, South Africa and Canada.

Speaking from his Collymore Rock, St Michael office, Meyer said both institutions expected to cross-refer clients.

"We have a lot of experience in dealing at the high end of the wealth-management industry, doing very specialised structuring for clients.

He also spoke of other avenues for Cidel in Central and South American markets through the alliance with Scotiabank.

Managing director and head of Scotiabank Private Equity, Tony Cestra said they were impressed with Cidel's performance, its experienced management team and future growth prospects.