Global asset manager Brookfield-owned Sagen has made its foray into the Indian mortgage market and took nearly one-third stake in India Mortgage Guarantee Corporation (IMGC), the company announced.
Sagen, which is the largest private-sector residential mortgage insurer in Canada, has taken about 31 per cent stake in IMGC in a primary funding round. The investment makes the Canadian firm IMGC’s second largest stakeholder. The company did not disclose the acquisition price.
The investment will help provide growth capital to mortgage guarantee firm IMGC’s business, the company 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,” Stuart Levings, President and CEO of Sagen said in the statement.
Apart from marquee investor Sagen, IMGC counts National Housing Bank, International Finance Corporation, and Asian Development Bank as its shareholders. IMGC started operations in 2014 and so far has guaranteed over 70,000 home loans amounting to abouts Rs 15,000 crore, through its partner lenders such as banks and housing finance companies.
“We are pleased to welcome Sagen as a strategic investor for our next phase of growth,” Mahesh Misra, CEO of IMGC said. “As the first ‘Mortgage Guarantee’ company in India, IMGC’s endeavor is to empower the housing finance ecosystem and promote early homeownership. We look forward to leverage Sagen’s global experience to drive innovation and transformation to further deepen the mortgage guarantee market in India,” he added.
IMGC said its new business volume grew by more than 50 per cent in FY2022 and the new business volume is expected to have a sustained CAGR (compound annual growth rate) of over 50 per cent in the next three years. While Sagen, Brookfield portfolio company, had $7.4 billion in total assets and $3.1 billion shareholders equity as at December 31st, 2021. Bangalore based Unitus Capital acted as financial transaction advisor to IMGC. The proposed deal will close after receipt of customary statutory and regulatory approvals.
