Chilean small business bank, Banco del Desarrollo, plans to buy a factoring agency during the first half of 2003. Acquisition talks are already under way and the final price tag is likely to fall between US$2.5m and US$3m, according to Desarrollo chairman Vicente Caruz.
The acquisition will enable Desarrollo to offer another source of financing to the bank's target market of small- to medium-sized enterprises (SMEs), he added.
The Desarrollo board has approved a US$23bn capital increase to fund expansion. Caruz forecasts growth in lending of 11.6% to small businesses and 27.6% to medium-sized businesses this year.
Banco del Desarrollo specialises in lending to SMEs and providing banking services to lower-income clients.
Source: Business News Americas
