Colombian bank Davivienda announced Tuesday it is taking over the operation of HSBC in Costa Rica, El Salvador and Honduras for $801 million.
Davivienda, Colombia’s third largest bank, already has a presence in Panama and Miami.
Colombian financial insitutions Bancolombia and Banco de Bogota – part of Grupo Aval – have also entered the Central American banking market with the purchase of Banco Agricola and BAC-Credomatic respectively.
In October 2011, Davivienda offered $420 million in preferred shares in order to finance expansion in Central and South America.
Since 2008 HSBC has closed 1,000 branches in Central and South America, following a decision to reduce its presence in the region.
HSBC is separating its operations in the region into independent blocks in order to sell them. According to financial publication Dinero it has not yet found a buyer for its South American operations, including Colombia.
