Business in brief

CIMA appoints head of Banking Supervision 

Charles Ilako has been appointed head of the Banking Supervision Division at the Cayman Islands Monetary Authority. He has more than 25 years of experience and knowledge of financial services and industry regulation. 

Mr. Ilako’s professional experience includes change management, director compliance, accounting issues, risk management and structure and government processes, as well as Basel II and III principles, implementation and strategies. 

His most recent post was executive director, Policy and Strategy, at the Jersey Financial Services Commission. Mr. Ilako has also served as lead partner in the regulatory compliance practice of FTI Consulting; senior adviser to the Executive Committee, BNP Paribas; accounting policy adviser with the Bank of England; director, Banking Capital Market Assurance, and subsequently, lead partner of the Financial Regulator practice at PwC; and senior adviser at the Financial Services Authority in the United Kingdom. 

He earned the designation Fellow Chartered Accountant from the Institute of Chartered Accountants in England and Wales.  

In other news, CIMA Managing Director Cindy Scotland has been reappointed deputy chairman of the Group of International Financial Centre Supervisors. Ms. Scotland has served in this capacity since 2011.  

GIFCS is an association of authorities concerned with the supervision of banks and related financial services primarily engaged in cross-border activities. The group has a core interest in promoting the adoption of international regulatory standards, especially in the banking, fiduciary and AML/CFT arena.  

Ms. Scotland was recently re-elected to the board of the International Association of Currency Affairs.  

Fortis scholarship recognizes former CEO 

CUC’s parent company Fortis Inc. has announced that it has established an endowed scholarship at Memorial University of Newfoundland in honor of H. Stanley Marshall and his significant contribution to the success of Fortis. The Fortis Inc.-H. Stanley Marshall Scholarship will support undergraduate students from a Caribbean country entering a professional school or faculty at Memorial University. Preference will be given to eligible students from Belize, Turks and Caicos Islands and the Cayman Islands. The inaugural scholarship of $7,500 will be awarded in the 2015-2016 scholarship year. 

Mr. Marshall’s career with Fortis spanned 35 years. He served as president and chief executive officer for more than 18 years before his retirement at the end of 2014.  

His business and personal connections with the Caribbean region date to 1999 when Fortis acquired an electric utility in Belize, which also marked the corporation’s first acquisition outside North America. He was instrumental in establishing an engineering scholarship program at Memorial University in 2006 for Belizean students.  

During his tenure as a board member with Caribbean Utilities Company and FortisTCI, which serve Grand Cayman and Turks and Caicos, respectively, Mr. Marshall helped develop student scholarship guidelines that focused on attracting and retaining top talent at these Fortis utilities, the company said. 

“Mr. Marshall is one of the most well-respected business leaders in Canada and in the North American utility industry, and we believe the establishment of the Fortis Inc.-H. Stanley Marshall Scholarship is a fitting tribute to his leadership and business accomplishments,” said Barry Perry, president and CEO, Fortis Inc. “Mr. Marshall is a strong advocate of education and a champion of academic opportunities that enable young people to pursue fulfilling careers. The Fortis Inc.-H. Stanley Marshall Scholarship will provide financial support to some of the students who have the potential to become future business and community leaders,” Mr. Perry added.  

Maples advises LATAM Airlines 

Maples and Calder has advised LATAM Airlines Group on its private offering of Enhanced Equipment Trust Certificates. 

In the United States, EETCs are commonly used as an alternative for aircraft financing, but LATAM Airlines Group is the first issuer of EETCs in Latin America. 

The two tranches of enhanced equipment trust certificates have been increased to an aggregate face amount of US$1.02 billion to meet demand. 

The proceeds from the certificates will be used to finance the acquisition of 11 new Airbus A321-200 aircraft, two new Airbus A350-900 aircraft and four new Boeing 787-9 aircraft, which are scheduled for delivery between July 2015 and March 2016. 

The private offering is comprised of Class A Certificates and Class B Certificates. The Class A Certificates will have an interest rate of is 4.2 percent per year with a final expected distribution date of November 15, 2027, and the Class B Certificates will have an interest rate of 4.5 percent per year with a final expected distribution date of November 15, 2023. The transaction will use up to four Cayman Islands special purpose vehicles. 

Appleby advises Nippon Paper 

Offshore law firm Appleby acted as Cayman counsel to Nippon Paper Industries Company Ltd. in relation to the sale of shares in Lee & Man Paper Manufacturing Ltd. by a subsidiary of Nippon Paper. The shares were sold to Lee & Man Paper Chairman Lee Man Chun Raymond and CEO Lee Man Bun for a total consideration of HK$1.27 billion. Nippon Paper remains a shareholder of the company with an 8.62 percent stake. 

In connection with the reduction of Nippon Paper’s stake in Lee & Man Paper, a shareholders agreement entered into in June 2010 between Nippon Paper and Gold Best, a wholly owned subsidiary of Lee & Man Paper, has been terminated, together with any formal business collaboration agreements involving the company.