Scotiabank and Cencosud sign agreement to boost credit card business in Chile

The companies signed final contracts through which Scotiabank becomes the holder of a 51% stake in Cencosud's retail financing business in Chile for a 15 year period.

Under this transaction, Scotiabank purchased shares in Cencosud

Administradora de Tarjetas S.A. (CAT) for a total amount of USD
$280 million.

Scotiabank will provide funding for 100% of the receivables portfolio for approximately USD $1 billion

Santiago, June 20th 2014. Seeking to boost its credit card business in Chile, as well as leading the way in the industry´s evolution, Scotiabank and Cencosud S.A., both leading companies in their industries, well known for their excellence and quality of service, have signed final contracts for the development of this business, where Scotiabank would hold a 51% stake and Cencosud S.A. a 49% in a 15-year partnership.

In this transaction, Scotiabank purchased shares in Cencosud Administradora de Tarjetas SA (CAT) in the amount of USD$ 280 million. Under the agreement, Scotiabank will also provide financing for 100% of the financial services portfolio in Chile, which currently amounts to approximately USD$ 1,000 million.
The contracts signed today include all the terms needed for the materialization of the partnership. This transaction is subject to regulatory approval in Chile and Canada and is expected to close before the end of the year.
Profit and risk arising from the operation of this business will be shared by both parties. Notwithstanding, this association is to be consolidated under Scotiabank.
Under this agreement, 2.5 million cardholders will benefit from easier access to new products and financial services and the expertise of Scotiabank, while receiving the Cencosud client benefits at our Jumbo, Santa Isabel, Easy, Paris and Johnson stores and Shopping Centers.

In addition to numerous benefits to clients, the new company will seek to achieve synergies, which should result in lower operational costs.
This association is framed within Cencosud´s long term strategic plan to boost financial services offered to clients without utilizing Company capital, implementing the same model that today successfully operates in Brazil and Colombia.

Marisol Fernández Natalia Nacif Ignácio Reyes

IR Manager IR Senior Analyst IR Senior Analyst


Phone +562 2959 0545 +562 2959 0368 +562 2959 0804

mariasoledad.fernandez@cencosud.cl Natalia.nacif@cencosud.cl Ignacio.reyesmiranda@cencosud.cl

distributed by