May 2010 Financial News

Insurance group getting $473m boost

May 21, 2010

The International Finance Corporation, a member of the World Bank Group, is investing $473 million (US$75 million) in Guardian Holdings Ltd to help the local insurance group expand in the region.

The companies reached an agreement yesterday with the IFC making an investment in equity in Westmoorings-based GHL at a price of $16 per share.

It is subject to shareholders’ approval and once completed, it would mean that the IFC would own 13 per cent of the outstanding share capital of the GHL group.

The investment in GHL will strengthen its capital base and will support the company’s strategic regional expansion, a published statement today signed by GHL group chief executive Jeffrey Mack said.

The price per share at which the IFC is investing represents a 6.6 per cent premium over yesterday’s closing share price for the company on the Stock Exchange and a 17 per cent premium over GHL’s 30-day average price of $13.65 per share, GHL said.

Operating out of Washington DC, the IFC provides investments and advice to build the private sector in developing countries, its website says.

The agreement includes converting IFC current US$50 million loan into common equity while at the same time investing US$25 million of new capital into GHL, Mack’s statement explained.

’The transaction will significantly improve GHL’s debt to equity ratio,’ the statement said.

Giri Jadeja, senior manager for IFC Financial Markets, said the company was pleased to strengthen its partnership with GHL as it looked for growth opportunities in the Caribbean and Central America.

GHL’s Mack said the IFC would be a key partner for the local group as it grew its operations in the region.


Source:
Curtis Rampersad Business Editor
Friday, May 21st 2010

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