Guardian/IFC US$70M loan deal almost inked

Shareholders of Guardian Holdings Limited have approved a deal for a member of the World Bank Group to invest US$75 million in the insurance conglomerate.

Guardian operates subsidiaries across the region including Jamaica.

Guardian Holdings has announced that it is in the final step to closing the deal with the International Finance Corporation (IFC) to buy a stake in the company.

Guardian Holdings' shareholders unanimously approved the transaction at an extra-ordinary meeting held on Wednesday.

The agreement includes converting a US$50 million loan from IFC into common equity while at the same time investing US$25 million of new capital in Guardian.

The insurance company will benefit from an injection of capital that will improve cash flow, expand its capital base, and reduce its debt obligations.

Guardian will also have cash to expand its operations.