Bermuda Commercial Bank Ltd. has announced a strategic investment in Westhouse Holdings plc. which it hopes will open up the London investment market to its customers in Bermuda.

BCB's chairman and managing director Michael Collier said the deal will provide a broader range of investment opportunities and services to the bank in order to meet their clients' needs.

And now the bank plans to build up a base of relationships with advisory and broking houses in the world's top financial centres to establish further outlets for investment.

On Wednesday, BCB invested £3.5 million ($5.2m) in a perpetual convertible loan instrument in Westhouse with a coupon of five percent which runs to September 30, 2015 and eight percent after that period.

"We are extremely pleased that our investment in Westhouse will enable them to accelerate their current growth plans," said Mr. Collier.

"As we continue with the development of BCB's banking and financial services business, we are looking to build robust commercial relationships with advisory and broking houses in the major global financial centres. This strategic investment into Westhouse will enable us to forge strong relationships in London and should enhance both businsses going forward."

The loan is convertible into ordinary shares in Westhouse at lower of 60 pence per share and a 10 percent premium to the audited net asset value, subject to a minimum of 50 pence per share. This conversion right runs for five years from August 3, 2010 and is subject to any regulatory consents required, including from the Financial Services Authority and the Takeover Panel in the UK.

There is no fixed repayment date for the loan instrument. Westhouse plans to use the investment funds for further growth, in particular, the continued growth of the company's recently-launched investment funds activities and market making operations, as well as its established areas of business, enabling it to expand its corporate finance, equity sales and research business into new industry sectors.

Westhouse and BCB may also syndicate up to £900,000 of the instrument with a small number of other investors.

Mr. Collier said this latest move was part of BCB's overall plan to grow its business gradually using a strategic and focused approach while making the most of the opportunities and benefits available.

"We want to do this slowly and properly for the right reasons," he said. "We want to invest the capital in the bank wisely and to make the bank profitable and therefore start paying dividends once again."

Bill Staple, chief executive of Westhouse, said: "This investment allows us to build mutually beneficial commercial links with BCB. It also permits our company to accelerate its expansion into investment funds, to develop further our market making operations in order to provide an increased level of service to both our institutional and corporate clients, and to widen our focus into new industry sectors. We look forward to a long-term relationship with BCB."

Westhouse is an integrated corporate finance and broking house offering corporate advisory, broking, trading and mergers and acquisitions services to small and mid-cap companies, listed on the Alternative Investment Market in London.