Last week, Scotiabank Peru agreed to purchase a 51% stake in Banco Cencosud retail bank for around US$100 million, Moody's Investors Service informed Thursday.
In this sense, Scotiabank Peru will become the Inca country's second-largest credit-card issuer, only surpassed by Banco de Credito del Peru (BCP).
Thanks to this transaction, which remains subject to regulatory approval, Scotiabank Peru will be able to offer additional products and services to Cencosud's customers.
"As a result of the acquisition, Scotiabank Peru's share of the active credit card market will rise to 21.5%, including CrediScotia, its subsidiary dedicated to consumer finance, from 18.3% currently," the credit rating agency noted.
Moody's also pointed out Scotiabank Peru and Banco Cencosud will "enter a 15-year partnership under which Scotiabank Peru will manage the credit card business and cross-sell products and services."
After this period, Banco Cencosud will have the option to repurchase its shares.
Banco Cencosud relied on a loan portfolio worth S/656 million (about US$200 million) as of March 2018, accounting for 0.26% of Peru's total system loans
and over 315,000 active customers.
The bank has branches in 63 of its parent company's supermarkets and department stores. It offers its own-branded credit cards and consumer loans
is present in Argentina, Brazil, Chile, Colombia, and Peru.