Bancolombia is going through a growth spurt. In the past
year it has taken a significant step into the region with a
sizable acquisition; boosted its balance sheet with bold debt
and equity issues; led the local tranche of some of LatAm's
most high-profile privatizations, and consolidated its leading
position in Colombia's corporate and retail banking
When Colombia's largest bank by deposits said it would acquire
El Salvador's Banco Agrícola in late 2006, the news
turned heads. While a relatively small market, El Salvador is
the only Central American country with an investment grade
rating and it sports a dollarized economy with stable
institutions. The $900 million purchase, paid for in cash by
Bancolombia's Panamanian division, gives Bancolombia nearly a
third of El Salvador's deposit base.
More importantly, however, is the overall effect of the
acquisition on Bancolombia's size. Pro-forma numbers at the
time of the...
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