Colombian Regulator Approves Bancafe Purchase

Colombia’s financial regulator has approved the acquisition by local bank Davivienda of Bancafe, which the former bought from the government at auction for $927 million last October. The acquisition will be funded by around $115 million from the issue of new shares to existing shareholders; a $75 million capital injection from the IFC; $165 million of subordinated debt, of which $65 million will be taken by the IFC; $250 million syndicated credit, as well as the bank’s own resources.