Sep 2006 Financial News

$50M Boosts GHL’s Central America Expansion

Sep 21, 2006

Guardian Holdings Limited has been provided with a US$50 million subordinated loan by the International Finance Corporation. The loan is to support its business expansion into Central American markets.

The long tenor of the innovative quasi-equity investment will cover the cash needs that a developing insurance business generates, said a GHL statement.

The financing will also strengthen GHL’s balance sheet and help diversify its sources of funding as it pursues further growth and expansion. The instrument is structured to qualify as solvency capital under global insurance industry best practice and is expected to enhance Guardian’s standing with regional industry regulators.

“The funds are being used as part of strategic management of our balance sheet and to provide the equity that we will need when we find a suitable acquisition. We were delighted to close this transaction with such a professional and diligent funding agency and our success demonstrates the strength that these very demanding investors place on our group,” said Rory O’Brien, GHL Group CEO.

Source: Newsday
Business Day
Thursday, September 21, 2006.