GE Capital Global Banking has reached a definitive agreement to sell BAC Credomatic GECF to Grupo Aval, a Colombian banking holding group, for $1.9bn.

Founded in 1952, BAC International Bank has operations in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Mexico, with approximately $5.1bn in loan assets, and $5.5bn in deposits.

The transaction is subject to certain regulatory approvals and other customary conditions, and the parties anticipate closing by the end of 2010.

GE was advised in the transaction by Credit Suisse, and Latham & Watkins served as external counsel.

Dmitri Stockton, president and CEO of GE Capital Global Banking, said: “This is a good deal for GE, and furthers our objective of reducing the overall size of GE Capital.

“We have enjoyed working with BAC’s shareholders and their world-class management team to successfully grow the franchise over the previous five years. We believe this transaction will be positive for BAC, and will allow the bank to focus solely on its excellent prospects for future growth.”