Bank of Nova Scotia today announced a transaction to acquire a 10% stake in Puerto Rico’s First BanCorp.

Scotiabank’s offer to purchase about 9.25 million shares to be issued by First BanCorp, for approximately US$94 million, is subject to regulatory approvals and certain conditions being met.

“We have been part of the Puerto Rican market for nearly 100 years and this represents an immediate, increased investment and an opportunity to benefit from future growth in the Puerto Rico market,” said Rob Pitfield, executive vp, international banking, Scotiabank. “Scotiabank has always looked beyond Canada’s borders for new opportunities and in this case, we are making an investment in First BanCorp.”

With headquarters in San Juan, Puerto Rico, First BanCorp is the second-largest financial holding company in the commonwealth and the 59th largest bank holding company in the U.S. With about 2,800 employees, the bank has total assets of US$17.4 billion (as of Sept. 30, 2006).

FirstBank, a subsidiary of First BanCorp, has significant commercial, consumer, mortgage and auto lending portfolios, as well as insurance and auto leasing businesses, and an expanding franchise in southern Florida. It is the leading bank by assets in the U.S. Virgin Islands and British Virgin Islands combined.

Scotiabank has been in Puerto Rico since 1910. Scotiabank de Puerto Rico offers a complete range of retail, commercial and corporate services. The subsidiary has more than 600 employees, nearly 60 automated banking machines (ABMs) and 20 branches.