Canadian lender Scotiabank has signed an agreement to acquire Banco Dominicano del Progreso, a bank with operations concentrated in the Caribbean nation of Dominican Republic.

The financial terms of the agreement were not divulged by the company.

However, Scotiabank stated that the transaction is not financially material. The deal is expected to impact Scotiabank’s common equity tier one capital ratio by nearly 10 basis points.

The acquisition forms a part of the bank’s strategy to expand its presence in the Caribbean region.

It will make Scotiabank the fourth largest lender in Dominican Republic in terms of assets and as a loan provider holding nearly 10% of the overall banking market share in the country.

The customer base will also double from around 250,000 retail and commercial customers to nearly 500,000.

Currently, Banco Dominicano del Progreso has 57 branches, 188 ABMs and 367 banking sub-agents across the Dominican Republic.

The transaction is subject to customary closing conditions and regulatory approvals.

Till then, all banking operations and services will continue as usual, while Scotiabank and Banco Dominicano del Progreso agreed to work together to ensure a smooth transition.

All Banco Dominicano del Progreso employees are also expected to join Scotiabank following the deal.

Headquartered in Toronto, Scotiabank provides financial services across North America, Latin America, the Caribbean and Central America, Europe and Asia-Pacific regions.

With employee strength of 89,000 people and assets more than $926bn, it offers personal and commercial banking, wealth management and private banking services to its customers.