Pending receipt of regulatory approvals and satisfying customary closing conditions, the transaction is likely to close during the third quarter of 2013.
The disposal of Panama subsidiary is part of HSBC’s overall strategy set out in May 2011 to shrink its global footprint and expand businesses in Brazil, Mexico, and Argentina.
HSBC Latin America CEO Antonio Losada said the company has sold or exited 46 businesses globally since the beginning of 2011 based on its five-filter approach.
HSBC Panama’s net asset value is estimated at $700m and had $7.6bn in assets, $5.7bn in loans and $5.8bn in deposits, as of 30 September 2012.
The deal, which includes HSBC Panama’s brokerage, fiduciary services unit, banking business and insurance businesses, will boost Bancolombia’s presence beyond Colombia.
Established in 1865 and headquartered in London, HSBC operates through long-established businesses and an international network of nearly 6,900 offices in over 80 nations and regions.
Operating in nine segments, the commercial bank in Colombia is headquartered in Medellín and was founded in 1945.
