The Superintendence of Competition has authorized the Honduran company Imperia Intercontinental and Inversiones El Salvador to buy Banco Citibank, five of its subsidiaries, Seguros e Inversiones, and Cititarjetas.
From a statement issued by the Superintendency of Competition in El Salvador:
The Board of Directors of the Superintendency of Competition has approved this day, the authorization request for a merger consisting of the purchase of Banco Citibank de El Salvador, S.A. and five of its subsidiaries, Seguros e Inversiones S.A. (SISA) and its subsidiary and Cititarjetas, by Imperia Imperia Intercontinental Inc. and Inversiones El Salvador S.A. de C.V. The deal involves a non-horizontal economic concentration of a conglomerate for most of its operations and a vertical relationship for the provision of financial services through ATMs at gas stations.
The consortium formed by Odebrecht and the Spanish company FCC will have to find a new bank to grant the funds that Citibank was supposed to provide under the original financing structure.
The exit of Citigroup from the $1,857 million financing structure for the design and construction of Line 2 of the Panama Metro could be due to the recent deterioration in the risk perception of the Brazilian company Odebrecht, whose rating Fitch cut on May 3, citing the "... the increased risk and uncertainty associated with lack of publication of the financial statements of the company at the end of April."
Without disclosing the amount of the transaction, the Canadian bank has announced the acquisition of Citigroup's operations in personal and commercial banking in both countries.
From a statement issued by Scotiabank:
Scotiabank will acquire Citigroup's personal operations and commercial banking operations in Panama and Costa Rica
SAN JOSE, July 14, 2015 - Scotiabank announced today that it has reached an agreement to acquire Citigroup's personal and commercial banking operations in Panama and Costa Rica, subject to regulatory approval. The core category 1 capital ratio of Scotiabank will be affected by approximately 15 basis points.
The business group chaired by the Panamanian Stanley Motta may be interested in acquiring units of Citi's consumer banking operations in Panama and Costa Rica.
It is not yet been revealed which of Citibank' consumer banking companies in Panama and Costa Rica they may be interested in acquiring. However, potential stakeholders include the General Bank of Panama and Grupo ASSA, which in addition to being insurers, also runs La Hipotecaria.
The letter of credit issued by Citi to Globeleq Mesoamerica Energy is for the import of 25 turbines for the 50MW wind farm Orosi, to be built in Guanacaste.
The Spanish company Gamesa is the beneficiary of the letter of credit for the import and installation of 25 turbines in the wind farm being developed by Globeleq Mesoamerica Energy in the area of Quebrada Grande, near Liberia, Guanacaste.
In two days yields on external debt maturing in 2023 rose by 0.23% after the announcement of the departure of Intel and the Bank of America.
In addition to increasing the perception of risk in investments in Costa Rica, Bloomberg.com reports that Citi cut its growth forecast for the Costa Rican economy in 2014, from 3.5% to 3.1% and from 4% to 2.2% for 2015.
Three banks are offering companies hedging instruments to combat volatility in the exchange rate.
Banco Nacional, Citibank and Davivienda bank are the financial institutions in Costa Rica authorized to offer currency hedging instruments which enable companies to fix a certain exchange rate for future transactions, eliminating the uncertainty generated by the price volatility of the foreign currency.
ProNicaragua, the official investment and export promoter of the Government of Nicaragua, will be organizing the first Central American summit on outsourcingservices entitled 'Central American Nearshore Summit 2013, which will bring together 150 participants from the U.S. and Latin America in this sector.
Between April 2012 and the same month this year, the credit card portfolio of state banks grew by 8.5%, while among private banks the increase was 33%.
The increase in the private sector is not surprising, since Banco Promerica alone has 35 types of credit card rates, being the issuer with the most diversity in the country. The dynamism is also reflected in income from fees which the banks charge for the use of plastic, accounting for 46% of total revenues.
A General Practice law firm which specializes in Business and Commercial Law as well as Foreign Investment in Costa Rica. Our firm originally established in 1940, currently operates offices in San José and Guanacaste
Operates in Costa Rica
Phone: (506) 2258 2525
Aguilar Castillo Love is a leading international law firm with offices in Central America and Ecuador.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Central America
Phone: (505) 2225 8748