Bank of Nova Scotia (TSX:BNS) has completed an agreement to acquire Royal Bank of Scotland’s wholesale banking operations in Colombia, as part of its strategy of investing in high growth markets, the company announced on Monday.

The agreement, which is still subject to regulatory approval, represents Scotiabank’s first acquisition in Colombia and would make it the only Canadian-owned wholesale institution with a presence in the country.

Terms of the transaction were not disclosed, but are “not financially material to Scotiabank,” the company said.

“Scotiabank has deep roots and a long history in the Caribbean, Central America and Latin America and we are proud to again grow our operations in this region,” said Rob Pitfield, group head of Scotiabank’s international banking division. “The acquisition of this operation complements our strategy of investing in high growth markets where we anticipate increased demand for financial services.”

Pitfield added that Latin America is an increasingly important part of Scotiabank’s international strategy. The bank already has operations in Mexico, Belize, El Salvador, Panama, Costa Rica, Dominican Republic, Peru, Venezuela, Brazil and Chile. Scotiabank has 31,867 employees, and 1,411 branches, kiosks and other offices in Latin America.

The RBSC platform offers deposit, loan and capital markets products to corporate and commercial customers in Colombia. It will be managed under Scotiabank’s global wholesale banking initiative, which brings together the product and sectoral expertise of Scotia Capital with the specialized regional experience of the company’s international banking division to deliver client coverage across five continents.

“Today’s announcement is very good news for our business based in Colombia,” commented Russell Gibson, divisional head for RBS Latin America. “Scotiabank has ambitious plans for the Colombian market and that makes this an exciting opportunity for our staff and our customers.”

Gibson said no changes would occur for some time, while the companies await regulatory approval for the sale to proceed.

IE