Chile's Banco del Desarrollo announced that it has purchased a 70% stake in factoring company Bandesarrollo Factoring for an undisclosed sum.
The purchase transforms Bandesarrollo Factoring into a subsidiary of the Chilean bank. Desarrollo's venture into the local factoring market falls in line with the bank's growth strategy, which also saw it acquire Italian financial group Intesa's Chilean unit Sudameris for some US$34m last year.
The bank's operational focus is primarily centred on small- and medium-sized businesses (SMEs) with the factoring unit aimed at augmenting the services Desarrollo offers within that corporate segment.
Desarrollo is Chile's seventh-largest bank in terms of loans. Apart from majority shareholder Sociedad de Inversiones Norte Sur, French bank Credit Agricole holds a 20% stake in the bank with Italian bank San Paolo di Torino and Holland's Oikocredit owning 15% and 5% respectively.
