Dominican bank merger uses NY deal structure

Author: Zoe Thomas | Published: 27 Jan 2014
  • The merger of two Dominican Republic banks, Banco BHD and Banco León, signals the expansion and growing sophistication of the country’s bank sector;
  • It used a New York style deal structure, illustrating the increased cross-pollination between legal markets;
  • International banks are expected to become more active in the Dominican Republic as they face growing competition from Latin American banks.

This month's merger of Banco BHD and Banco León signals the growing sophistication of the Dominican Republic’s (DR) banking and legal market.

The deal’s use of a New York legal structure reflects the markets comfort with global standards as a result of the country’s growing number of cross board deals. However the merger, which created Banco BHD León, was eventually executed under Dominican...