Cencosud and Scotiabank seal agreement to enhance the Financial business in Chile

• In a transaction carried out this afternoon, both companies signed the definitive contracts through which Scotiabank will participate with 51% of Cencosud's Retail Financial business in Chile for a period of 15 years.
• The transaction includes the purchase of shares of Cencosud's Credit Card Administrator (CAT) by Scotiabank, for an amount of USD 280 million.
• Additionally, it contemplates financing of 100% of the portfolio by Scotiabank, totaling approximately USD 1 billion.

Santiago, June 20, 2014-. With the aim of boosting the Credit Card business and facing the challenges posed by the financial sector in Chile, Scotiabank and Cencosud, two leading companies in their respective sectors and recognized for their excellence and quality of service, have signed the definitive contracts for the development of the retail financial business, in which Scotiabank will hold 51% and Cencosud 49%. The partnership will have a duration of 15 years.

The transaction includes the purchase of shares of Cencosud's credit card administrator (CAT) by Scotiabank, for an amount of USD 280 million. Additionally, the agreement includes the financing, by Scotiabank, of 100% of the credit card portfolio in Chile, amounting to around USD 1 billion.

The contracts signed today encompass all the conditions for the materialization of the partnership. The final closure of the transaction will be subject to approval from regulators in Chile and Canada, expected to occur towards the end of the year.

Both firms will share the benefits and risks of the business. However, the partnership will be consolidated under Scotiabank.

With this agreement, approximately 2.5 million credit card customers will benefit by having direct access to new financial products and services from Scotiabank's expertise. All of this while maintaining the benefits they already had as Cencosud customers, through its brands Jumbo, Santa Isabel, Paris, Easy, Johnson, and its Shopping Center business.

As a result of this partnership, synergies will be sought to reduce costs and provide multiple benefits for customers.

This partnership is part of Cencosud's long-term strategic plan, aimed at enhancing the financial service it offers to its customers without the need to allocate its own resources, aligning it with the model that is already functioning in its operations in Brazil and Colombia.