Funds to be disbursed in two tranches at 5.35% and 5.20%, respectively

Durrant Pate/Contributor

Trinidad-based regional insurance powerhouse Guardian Holdings Limited (GHL) has executed a loan financing deal for a maximum amount of TT$450 million.

The deal was executed under authorisation by the GHL board of directors, effective last Thursday, March 21. The financing deal was arranged by subsidiary company, Guardian Group Trust Limited.

The insurance giant did not indicate the financial institution from which the loan was sourced and disbursed. The proceeds from this facility will be allocated for general corporate purposes.

Details of the loan

The total loan amount of up to TT$450-million will be disbursed in two tranches. The first tranche (“Tranche A”) was disbursed on March 21, in the sum of TT$382 million at a rate of interest of 5.35 per cent per annum.

The second tranche (“Tranche B”) is proposed to be disbursed at a later date for a facility of up to TT$68-million or the equivalent denominated in any other currency, at a rate of interest of 5.20 per cent per annum.

Both Tranche A and Tranche B will mature on June 21, 2029. GHL advises that the security documents for this loan include a Debenture and Deed of Priority.

Latest financial performance

Guardian’s positive growth momentum has continued, maintaining good returns in core business performance across its operations in the English-speaking and Dutch Caribbean markets. For the year ended December 2023, unaudited profit attributable to shareholders grew to TT$713 million, up TT$249 million or 54 per cent over the prior year’s results of TT$464 million.

Earnings per share increased to TT$3.07 versus TT $2.00 in the comparative period. Growth for the December quarter was primarily due to higher insurance service expenses and higher net insurance finance expenses offset by higher insurance revenues and higher net income from investing activities.