India Mortgage Guarantee Corporation (IMGC) on Thursday said Sagen MI Canada has agreed to acquire 31 per cent stake in the mortgage guarantee firm for an undisclosed amount.
The proposed transaction will close after the receipt of statutory and regulatory approvals, IMGC said in a statement.
Sagen, the largest private-sector residential mortgage insurer in Canada, is owned by Brookfield Business Partners LP, which is a group entity of Brookfield Asset Management Inc.
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, it said.
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, it said.
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.
Talking about the strategic investment, Stuart Levings, president and CEO of Sagen said: ''We look forward to supporting IMGC's growth as they continue to help first-time homebuyers achieve their dream of homeownership.''
IMGC's new business volume grew by more than 50 per cent in FY22 and is expected to have a sustained CAGR of over 50 per cent in the next 3 years, it said.
As the first mortgage guarantee company, the company's endeavor is to empower the housing finance ecosystem and promote early home ownership, said IMCG CEO Mahesh Misra.
(With inputs from PTI)
