In return for the transfer of operations, Scotiabank will gain around a 20% stake in Colombia lender Davivienda.

Scotiabank will hand over its operations in Colombia, Costa Rica and Panama to Colombian bank Davivienda, both parties said on Monday, in exchange giving Scotiabank a 20% stake in Davivienda.

The Bank of Nova Scotia has signed an agreement to sell its operations in Colombia, Costa Rica and Panama as it looks to boost efficiencies and reorganize its Latin American businesses. The foreign operations will be transferred to Banco Davivienda SA,

Scotiabank becomes a shareholder, with approximately 20% of all Davivienda operations and participation in its board of directors. This was reported by several Colombian and Costa Rican media. This transaction not only represents one of the largest recent financial sector agreements,

The Bank of Nova Scotia BNS or Scotiabank has agreed to transfer its banking operations in Colombia, Costa Rica and Panama to Davivienda. Further, Mercantil Colpatria will divest its stake in Scotiabank Colpatria in Colombia as part of the deal.