Credicorp Enters Chile with IMTrust Deal

Peru’s Credicorp has laid another stone in its plan to build a trans-Andean platform, agreeing to a deal giving it 60.6% of Chilean investment bank IMTrust. The parent of Banco de Credito del Peru is paying a price equal to 3.5% of its equity, around $122m, according to a Credicorp investor relations official. Almost all of the transaction is to be paid for in cash, with a small portion in shares as a retention mechanism. The deal follows the acquisition of 51% of Colombia’s Correval, and positions BCP well in the race to capitalize on the growing economies in Colombia, Peru and Chile, and their market integration through the MILA initiative. BTG acquired Celfin last year with the same motive, and others are eyeing these markets. IMTrust is to maintain its existing organization, and its executives will remain in their current roles, Credicorp says. Credicorp did not use an external advisor in the deal, the official says. Separately, Fitch upgraded BCP’s credit rating to BBB+ from BBB. The outlook is stable.