Apr 2011 Financial News

Sagicor signs for IFC’s US$100m

Apr 01, 2011

Top officials of Sagicor Financial Corporation (Sagicor) yesterday signed an agreement in Washington DC that will result in the International Finance Corporation (IFC), investing up to US$100 million in Sagicor. The investment, IFC’s largest-ever in the insurance sector, and its largest investment to date in a single Caribbean entity, consists of up to US$20 million in common shares, or about a 4 per cent stake in Sagicor, and up to US$80 million in convertible and redeemable preference shares. The investment is subject to regulatory and shareholder approval. In a statement, Sagicor’s group chairman, Stephen McNamara, said the benefits of the partnership and investment in the wider communities will become evident as SFC wisely deploys the funds raised for growth within the region.

“I am quite sure that when our Shareholders are fully apprised of the details of this agreement, they will support it and, in so doing, unlock myriad opportunities for further collaboration between our two organisations,” he said. Speaking of the investment, McNamara said: “This level of investment by IFC, a highly reputable international institution, is an extreme message of confidence in Sagicor, a tremendous vote of confidence in its management, its operations and its direction. “But perhaps of even greater importance is the fact that IFC has agreed with us that our existing shareholders should be afforded the prior opportunity to invest in the company as part of this transaction.”

In a separate statement, the IFC said that the investment demonstrates confidence in the long-term future of the Caribbean insurance industry following several market failures and a tightening of credit arising from the 2008 global economic crisis. The transaction will also allow consumers, especially the poor, to plan and invest in the future by helping to expand Sagicor’s presence in the Caribbean and eventually in Latin America. “Insurance gives people the security they need to grow businesses and invest in the well-being of their families,” said IFC Executive Vice President and CEO Lars Thunell.


Source:
Trinidad Guardian
Friday April 1, 2011

http://guardian.co.tt/business/2011/04/01/sagicor-signs-ifc-s-us100m