Jun 2016 Financial News

Sagicor moves to Bermuda

Jun 13, 2016

THE Sagicor Financial Corporation (SFC) is moving its headquarters from Barbados to Bermuda.

In a statement, SFC announced that at the 13th annual meeting held last week, shareholders approved the special resolution in connection with the continuance of the company as an exempted company under the laws of Bermuda and the discontinuance of the Company as a company incorporated under the laws of Barbados.

‘The continuance of the company under the laws of Bermuda should have a positive impact on the credit rating of the company without affecting its operations in our various markets,’ the statement said.

At the meeting Shareholders also re-elected L Jeannine Comma, Peter E Clarke and Dodridge D Miller for another three-year term. The incumbent Auditor, PricewaterouseCoopers SRL, was also re-appointed for the ensuing year.

The company has been searching for a new home base since its current base, Barbados, was downgraded by the rating agency Standard and Poor’s. It considered relocating to the United Kingdom, here to TT or to Bermuda, eventually choosing Bermuda as its new home.

In a letter to shareholders in advance of the AGM, the company’s management said if the move is approved the company “could reasonably expect to receive a Standard and Poor’s rating lift to BB+ unhindered by the restrictions of the current Barbados rating. Improvement in the company’s rating would result in reduced cost of capital, increased attractiveness to regional and international investors and all the attendant ancillary benefits flowing therefrom.” Bermuda has a Standard and Poor’s Rating of A+ with a positive outlook while Barbados has a sovereign rating of B with a negative outlook.

According to notes to shareholders contained in the notice of the AGM, “This is after a series of downgrades (of Barbados) in the period from 2009 to 2014. In order to improve the company’s ratings (both corporate and securities), the company is seeking approval to redomicile into Bermuda, which is an investment grade-rated country.

This would be achieved via a corporate migration, or continuance, of the company to Bermuda and the discontinuance of the company in Barbados.”

Source:
Newsday
Monday June 13, 2016

http://www.newsday.co.tt/business/0,229166.html