This marks Sagen’s first strategic investment in India
Sagen™ is the largest private-sector residential mortgage insurer in Canada.
Sagen is owned by Brookfield Business Partners L.P, which is a group entity of Brookfield Asset Management Inc (“BAM”)
Existing investors of IMGC include : IFC,ADB Bank, National Housing Bank Enact Holdings
Sagen to aquire ~31% of IMGC in a primary funding round
With this Sagen will become the second largest shareholder ( largest is Genworth)
New Delhi, NFAPost: The India Mortgage Guarantee Corporation (“IMGC” or the “Company”) announced that Sagen MI Canada (“Sagen”) has signed a definitive agreement to acquire a stake representing approximately 31% of the Company in a primary funding round. The proposed transaction will close after receipt of customary statutory and regulatory approvals.
This investment marks the onboarding of another marquee investor in IMGC, which currently has National Housing Bank, International Finance Corporation, Asian Development Bank, and Enact Holdings, Inc. (through its subsidiary) as its shareholders.
The proceeds will provide growth capital to the business and support the enhancement of operational and technological capabilities while maintaining a robust risk management framework.
This will be Sagen’s first investment in India. Sagen has been operating in Canada for more than 27 years and is the largest private-sector residential mortgage default insurer in Canada.
IMGC has built a significant competitive position by guaranteeing over 70,000 home loans amounting to more than Rs 15,000 crore, through its partnership with 19 lenders including leading Banks and Housing Finance Companies.
Affordable housing
Affordable housing is one of the most promising segments in the retail finance space and IMGC has been playing a crucial role in helping its lender partners foray into this space with minimal risk and helping home buyers fulfil their dreams of owning a home through higher eligibility and lower equated monthly installments.
IMGC’s new business volume grew by more than 50% in FY22 and is expected to have a sustained CAGR of over 50% in the next 3 years.
Confirming the strategic investment, Stuart Levings, President and CEO of Sagen said, “We are excited to be making this investment in IMGC and look forward to supporting IMGC’s growth as they continue to help first-time homebuyers achieve their dream of homeownership.”
Speaking on the development, IMGC Chief Executive Officer Mahesh Misra said IMGC is pleased to welcome Sagen as a strategic investor for next phase of growth.
“This investment is a strong endorsement of the quality of businesses we have built to scale over the years. As the first ‘Mortgage Guarantee’ company in India, IMGC’s endeavor is to empower the housing finance ecosystem and promote early homeownership,” said IMGC Chief Executive Officer Mahesh Misra.
He said the company looks forward to leverage Sagen’s global experience to drive innovation and transformation to further deepen the mortgage guarantee market in India. “We are delighted by the trust placed in us to actively participate in our growth journey,” said IMGC Chief Executive Officer Mahesh Misra.
Bangalore based Unitus Capital acted as exclusive financial transaction advisor to IMGC.
About India Mortgage Guarantee Corporation:
India Mortgage Guarantee Corporation Private Limited, a private limited company incorporated under the Companies Act, 1956 and registered as a mortgage guarantee company under the Mortgage Guarantee Companies Investment(Reserve Bank) Directions, 2008.
IMGC currently has National Housing Bank, International Finance Corporation, Asian Development Bank and Enact Holdings, Inc. (through its subsidiary)as its shareholders. It provides mortgage guarantee on retail home loans to various mortgage lenders including banks and NBFCs.
About Sagen MI Canada Inc.
Sagen MI Canada Inc., operating through its wholly-owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as Sagen™), is the largest private-sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers.
Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31st, 2021, the Company had $7.4 billion total assets and $3.1 billion shareholders’ equity. Sagen is a Brookfield portfolio company.
