Roundup: Scotiabank lands in Brazil, Banesco, Santander unit debt

- Tuesday, October 4, 2011

Roundup: Scotiabank lands in Brazil, Banesco, Santander unit debt

Canada's Scotiabank (NYSE: BNS) has reached an agreement with Commerzbank to acquire Dresdner Bank Brasil.

Terms of the transaction were not disclosed. The deal has been approved by Brazilian central bank BCB, the bank said in a press release.

While Dresdner Bank Brasil has operated as a wholesale bank, it also has a commercial banking license, enabling it to offer a range of financial services. Scotiabank retains this license as part of the acquisition and will operate as Scotiabank Brasil Banco Multiplo, the release reads.

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To read the full release, go to this link

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The US branch of Banesco, Venezuela's largest bank, has opened its first office in San Juan, Puerto Rico.

Banesco USA will focus on Puerto Rican SMEs, a market abandoned by the majority of big financial institutions because of the lending service's complexity, Banesco Puerto Rico chairman Juan Carlos Escotet said in a press release.

More than 208,000 SMEs are registered in Puerto Rico, according to the island's department of works and human resources. This sector generates 837,000 jobs.

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Moody's has assigned a Aaa national scale local currency debt rating to Argentine lender Santander Río's expected second issuance under an already rated program, amounting up to 200mn pesos (US$47.5mn).

The agency also assigned a Ba1 global local currency debt rating to the expected second issuance. The outlook for all ratings is stable, Moody's said in a report.

Seniority was taken into consideration in assigning the rating, Moody's said, adding that it is equal to the senior global local currency deposit rating.

Santander Río is the Argentine subsidiary of Spain's Santander (NYSE: STD). It had assets of 41.1bn pesos and total loans of 23.3bn pesos as of end-June.

To read the full report, go to this link