Barbados Investment Fund
The Barbados Investment Fund was established in July 1992 as a partnership between the Central Bank of Barbados (CBB) and Caribbean Financial Services Corporation (CFSC). The creation of this fund grew out of an awareness of difficulties in raising equity capital and the constraint which was placed on the development of small and medium sized enterprises in Barbados.
The principal objective of the Fund is to make investments in Barbadian owned, private sector enterprises located in Barbados and/ or St. Lucia. As a pre-cursor to any BIF investment, the majority of shares must be held by Barbadian shareholders. Such investments must have the potential to contribute significant value to the economies of Barbados and St. Lucia by increasing foreign exchange earnings and/or employment with the prospects of providing owners with capital appreciation.
Currently, the fund is solely owned and managed by CFSC.
The BIF’s definition of a “small” company is one where shareholders’ equity does not exceed BDS$1,000,000, the company does not exceed BDS$2,000,000 in annual sales and has twenty-five (25) employees or less. A “medium” sized company is one where the shareholders’ equity is in excess of BDS$1,000,000 but not more than BDS$5,000,000, annual sales are less than BDS$8,000,000 and there are less than 100 employees.
The BIF will become involved in the areas of manufacturing, agriculture, agro-industry, tourism and tourism- related enterprises which are considered to be commercially viable.
The BIF will provide funds for capital cost components, i.e. equipment, buildings and real estate, as well as working capital support.
In addition to the provision of financing arrangements, the BIF will support the management of companies through participation on their boards of Directors as advisors. Services rendered will be in the form of financial services and liability management.
All BIF investments will be in the form of loans and/ or secured bonds where necessary and will be accompanied by loan and bond agreements.
Not more than BDS$250,000 of the BIF’s funds are to be committed to a single company. The BIF will not acquire controlling interest in any company.
In order for a meaningful business assessment to be undertaken by the BIF you should be prepared to discuss the company’s business plan, including its financial and management structure and its marketing and growth strategies for the next three to four years. You should also make available your company’s current and or recent audited financial statements. If audited financial statements are not available, the company / individual will be required to provide BIF with three (3) years’ management accounts and six (6) months of recent bank statements.