Sagicor Financial Corporation could soon receive a $200 million injection from an independently-run World Bank entity called International Finance Corporation (IFC).
The announcement has come from Sagicor’s group president and chief executive officer Dodridge Miller, who said the proposed partnership demonstrated “confidence in the management and operations of Sagicor” and would represent a “significant partnership between the two institutions”.
More importantly, if negotiations between the two are successful and the deal is sanctioned by the Securities Commission and Sagicor’s shareholders, existing shareholders will get an opportunity to buy more shares in Sagicor.
Miller, who heads the Barbados-headquartered company, said: “In addition to exploring strategic business opportunities, immediate discussions are focused around an investment by IFC of up to US$100 million in the form of common and preferred shares in Sagicor.”
Noting that it was IFC that approached Sagicor last year, Miller said: “An approach from such a respected international private sector investor, a member of the World Bank Group, demonstrates confidence in the management and operations of Sagicor.
“The proposed relationship, reinforced by a sizeable investment by IFC, would provide us with additional long-term capital to pursue our regional growth strategy, and further cement the position of the Sagicor Group as the leading provider of insurance and ancillary financial services in the region.”
IFC, which is based in Washington, started in 1956 and is the largest organization of its kind, holding a US$42.5 billion portfolio in more than 100 countries.
It is a development finance institution for the private sector, operates like a business but is owned by the World Bank’s 182 member countries which provide its authorized share capital of US$2.4 billion, and collectively determine its policies, and approve its investments.
