In its first issuance of investment certificates, Banco Azul in El Salvador sold $21 million, with a five year term and a fixed rate of 5.98%.
The banking institution began operating in mid-2015, with an initial capital of $60 million, contributed in full by Salvadoran investors.
Eleconomista.net reports that "...It is the first placement in the BVES after the pension reform. According to Carlos Araujo, president of the aforementioned banking institution, the parameters were defined before the pension agreement and it was decided to maintain the rate."
The new entity, founded with 100% local capital, has started operating two branches offering products such as savings and checking accounts, personal loans, mortgages and corporate lending.
The entity started with an initial capital of $60 million, provided entirely by Salvadoran investors, as reported by representatives of the bank when they started the license application process.
The Agricultural Bank has started construction of the building which will be its headquarters in the capital, with an estimated $55 million investment.
The new headquarters of the Agricultural Bank will be located south of the capital, on the Olympic Avenue and its construction will require an investment of approximately $55 million.
The CEO of the Agricultural Bank, Rafael Barraza told Laprensagrafica.com that "...
With amounts from $5 to over $50,000, people bought 1412 shares in Banco Azul which will begin operations in 2014.
This amount makes up the $60 million needed for the start of operations by the entity which was formed last September with a capital of $20 million. Of the 1,412 shareholders 97% are natural persons and 3% are companies.
"... When we announced the creation of Banco Azul El Salvador, on September 23rd, I said that one of our market differentiators, would be to convert ourselves into an attractive investment instrument for Salvadorans through the possibility of becoming shareholders," said Carlos Araujo, president of the institution.
The new bank, with a capital of $20 million, will begin operations in the second quarter of 2014 in the Salvadoran plaza.
On Monday September 23, a group of Salvadoran businessmen signed an act of constitution for Banco Azul de El Salvador, which is chaired by Carlos Enrique Araujo and consists of 100% of shareholders from that country.
During its first year of operations, Banco Azul intends to open 10 branches, 7 in San Salvador and another 3 in the interior of the country.
Banco Azul, which is to join the 10 other privately owned banks, is characterized by having Salvadorans shareholders.
The Superintendency of the Financial System is considering the application of a Salvadoran entity which, if there are no objections, will proceed to incorporate the company Banco Azul de El Salvador S.A. in August.
Eleconomista.net reports: "Among the founders of Banco Azul are: Carlos Enrique Araujo, Fernando Alfredo de la Cruz Pacas, Manuel Rodríguez Harrison, Raúl Navarrete Belismelis, Luis Álvarez Prunera and Óscar Armando Rodríguez, who make up 87.95% of the shareholding. "
The main shareholder of the new bank, which will open operations on 13 July, is the Panamanian holding company Bicapital Corporation.
As outlined in an article in Elperiodico.com.gt, Banco Industrial El Salvador will absorb the existing operations of the representative office of Banco Industrial Guatemala, which is already operating business loan services in El Salvador.
The leading Central American banks believe that the presence of the Colombian financial holding group will bring greater dynamism to the market.
Nacion.com reports that most bankers drew attention to the group’s size and its success in Colombia.
Armando Arias, president of the Salvadoran banking association (ABANSA), commented that, “the arrival of such a large group is good news for Central America.
Both "Banco Industrial" and G&T Continental are moving forward with their expansion plans in Central America.
Banco Industrial will open an office in El Salvador in May 2010, while G&T Continental plans to enter the Costa Rican market in the medium term. G&T already operates in Panama and El Salvador.
Diego Pulido, director at "Corporación BI", parent company of Banco Industrial, said in a Prensalibre.com article that "...
The bank plans to expand its presence to 39 branches, from the 29 offices it currently operates in El Salvador.
The announcement was made by Luis Niño de Rivera, president of the board, who remarked that the bank has so far created 445 jobs and will employ 100 more people next year.
"After just three and a half months of operating in the country, Banco Azteca already has around 50.000 customers and $19 million in deposits.