Apr 2011 Financial News

Sagicor & IFC Reach Agreement

Apr 05, 2011

The following news release was received from Sagicor Financial Corporation:

Sagicor Financial Corporation (Sagicor) and the International Finance Corporation (IFC), a member of the World Bank Group, today signed an agreement that will result in IFC investing up to $100 million in Sagicor, subject to Regulatory and Shareholder approval.

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 $20 million in common shares, or about a 4 percent stake in Sagicor, and up to $80 million in convertible and redeemable preference shares.

Mr. Stephen McNamara, Group Chairman of Sagicor 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 agreed with us that our existing Shareholders should be afforded the prior opportunity to invest in the company as part of this transaction.”

The Chairman is of the view that 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 organizations,” he said.

Lars Thunell, IFC Executive Vice President and CEO, said, “Insurance gives people the security they need to grow businesses and invest in the well-being of their families. This partnership between IFC and Sagicor will promote greater access to more types of insurance products in the Caribbean and beyond to Latin America.”

This is the second step in what is expected to be a partnership that has the potential to redound to the benefit of the Stakeholders of both organizations and the communities they serve. It is no coincidence that both IFC and SFC have similar missions – to improve the lives of the people in the communities in which they operate.

Sagicor will now seek all applicable Regulatory approvals, and will then put the agreed terms of this investment to all Shareholders in General Meeting for their approval.


Source:
The Trinidad and Tobago Stock Exchange Limited
Tuesday April 5, 2011