Bank of Nova Scotia today announced it has closed a US$1.02 billion transaction to acquire Banco del Desarrollo, Chile’s seventh largest bank.

Scotiabank acquired 19,845,247 or 99.5% of Banco del Desarrollo shares, valued at US$51.79 per share.

“Chile is one of the most dynamic and developed markets in South America,” says Rick Waugh, Scotiabank’s president and CEO. “We have a long and strong history of serving the Chilean market. The addition of Banco del Desarrollo fits with our strategy of driving sustainable revenue growth by building our presence in countries where we have existing operations.”

With total assets of more than US$5.7 billion, Banco del Desarrollo has a nationwide network of 74 branches. It specializes in mid-market commercial lending, small business and micro business lending, as well as consumer finance.

Scotiabank’s Chilean subsidiary, Scotiabank Sud Americano, has total assets of US$4.4 billion and 57 branches providing services in retail banking and personal lending, wealth management, corporate and investment banking services, commercial lending and insurance.

The combined operations will create Chile’s sixth largest bank. At a meeting of the new Board of Directors today, Sergio Concha, a Chilean banker with nearly 30 years experience serving Central and Latin America, was named the new General Manager of Banco de Desarrollo.

“All of us at Scotiabank welcome these new customers and the employees that will join us in the Scotiabank family,” says Concha.

Banco del Desarrollo was founded with a mission to support community and social development, providing banking services to small and medium-sized companies, community organizations and individuals entering the financial services market. Scotiabank shares Banco del Desarrollo’s commitment to serving these markets and to helping all customers become financially better off.

Scotiabank first entered the Chilean market in 1990 with a 25% stake in Banco Sud Americano. In 2000, it increased its ownership to 98.8% and, in 2001, re-branded the subsidiary as Scotiabank Sud Americano.