THE EAST Caribbean Financial Holding Company (ECFH) has launched an Eastern Caribbean offering of new ordinary shares at a maximum of EC$8 million (US$3.8 million).

The offering, which is being posted for a limited time from June 18-22, comes on the heels of a record profit year for the institution.

Share price has been set at 12.50 cents per ordinary share, with a minimum subscription of 100 shares and multiples of 50 thereafter.

Shares can be purchased at any branch of the Bank of St. Lucia, Caribbean Money Market Brokers and other regional brokers.

"This public offering comes in a year when the bank is enjoying steady growth in assets and earnings. In fact, during the past five years, the shares of the group have appreciated by more than 50 per cent and investors purchased shares in the initial public offer of then NCB in 1999 at $5.00 would now be enjoying capital gains of 120 per cent," said Manager Esther Brown during Wednesday's launching ceremony.

She said that dividend returns for 2006 was at 10 per cent of the market price of the shares and 20 per cent of the initial offer price.

Shareholders, according to officials, have enjoyed an annual average return of 14 per cent over the past five years, making the ECFH shares the most lucrative in the region.

The bank's asset based has grown from EC$887 million at the end of 2002 to $1.6 billion at the end of December 2006.

"Net loans portfolio also increased by 54 per cent from $575 million in 2002 to $887 at the end of 2006 and has become far more diversified along the key economic sectors of tourism, construction, transport, residential housing, manufacturing, agriculture and services," said group Managing Director Robert Nostrom.

The proceeds of the share issue will be utilised to facilitate future business expansion of the group's main subsidiaries.

- CMC