Notable South African banking group, FirstRand Limited, has declared plans to open a branch in Guernsey, shifting focus the international stage as it targets Europe’s top financial clusters.

The bank intends to expand in Guernsey as an offshore financial subsidiary in order to issue stock and other securities in international markets, raising capital for both domestic and foreign business activities of the parent corporation.

Guernsey, officially the Bailiwick of Guernsey, is part of a cluster of islands that form the Channel Islands. Though not a member of the EU, Guernsey, with about 70,000 people, has a high quality of life, enjoys proximity to the UK – with its capital London listed as one of the top global financial hubs – and boasts a competitive corporate tax regime. Finance-banking, investment funds, wealth management and captive insurance, are the largest contributor to the island’s economy.

Official figures from the Guernsey Financial Services Commission show that the total value of deposits held by banks in Guernsey as at June 2014 stood at $99 billion with financial services such as banking, fund management, and insurance constituting about 37 percent of GDP. This makes it an attractive spot to pitch tent beyond Africa’s economic borders.

This new banking operation will enhance the bank’s presence in Guernsey as it already provides a wide range of fiduciary services through the specialist international offshore service provider of the FirstRand Group-FNB International Trustees.

Speaking on the new investment, Fiona Le Poidevin Chief Executive of Guernsey Finance said “FirstRand is a welcome addition to the Guernsey banking market… and the fact that it has chosen Guernsey as a location for an offshore subsidiary reinforces the global and international nature of our banking industry.”