Scotiabank has agreed to acquire the corporate and commercial banking operations of the Royal Bank of Scotland in Chile.

Terms of the deal were not disclosed, although the Chile business has been estimated to be worth $900 million in total assets. The Republic of Chile has a GDP of around $190 billion and its economy is touted to grow from 5 to 6 per cent from 2010 to 2011. Scotiabank first entered the market in 1990 and has since grown to a network of 155 branches offering retail banking, wealth management, corporate and investment banking, and others.

"This is a unique opportunity to increase Scotiabank's presence in Chile, one of the most developed and attractive markets in the region," Rob Pitfield, the group head for international banking, said in a statement.

"It is consistent with our international strategy of investing in countries where we have existing operations and see great potential for growth," Pitfield added.

Scotiabank's total assets in Chile is at $10.4 billion.