The New Sagi

26 August 2015


150826 Sagicor

So, in all the quiet summer LatAm market space,  Sagicor Finance (2015) Limited, a member of the Sagicor Group, successfully issued a new seven-year bond on August 11, 2015 in order to refinance debt, including the US$150 million 10 year bond due in 2016.

The call on the 2016s were announced on 11th August and are effective come 10th September 2015.

The new US$320 million bond matures in 2022, and comes with an 8.875% fixed rate of interest for the period with interest payable semi-annually.

ABOUT SAGICOR

Sagicor is a leading provider of financial services in the Caribbean. Operating in 22 countries, including the USA and Latin America, Sagicor has total assets of US $6.2 billion, and $774 million in capital.  The Sagicor Group offers a wide range of products and services including life insurance, annuities and group and individual health, and has an insured base in the region of two million.  Sagicor  is  a  widely-held  publicly- traded  company  with  over  37,000  shareholders,  and  is  listed  on  the  stock exchanges of Barbados, Trinidad and Tobago and London.

ABOUT SAGICOR NEW ISSUE

Known as ‚Äúthe New Sagi‚ÄĚ to brokers and traders, this new issue was successfully completed by book runners JP Morgan and Scotiabank.¬† In a recent press release, Scotiabank VP, Dylan Coke, stated, “It is important to note that not only was the Bond very successful overall, there was a robust demand for it within the Region.”¬† He added that approximately a third of the Bond’s takers were Caribbean investors.

Rating agencies Standard & Poor’s and Fitch have both given the Bond issue a ‘B’ rating.¬† This rating has been capped in line with the sovereign rating for Barbados.

Despite a difficult market environment, the transaction was well accepted by investors and continues to show an upward trending price. As at the time of writing, the last price was seen at 107 with a yield of 7.397 %, high on 08/20/15 at 107.25 yielding 7.35 %.

150826 Sagi 2022

 

 

 

 

 

As mentioned before, approximately 1/3 of the bond’s takers were derived from the Caribbean and we look forward to seeing some exciting things with this bond over the next two weeks prior to the repayment of 150 mm owing to the investors of the 2016 Sagicor.

If you’re interested in the New Sagi, contact Ihsan or Mike on the trading desk.

But we know there’s more to LatAm than Sagicor (o’course!), so click here for¬†today’s indicative levels.

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