REG - EJF Investments Ltd EJF Investments-EJFZ - Portfolio update

EJF InvestmentsAnnouncement

18/07/2024 15:45

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RNS Number : 9946W  EJF Investments Ltd  18 July 2024

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18 July 2024

EJF Investments Ltd ("EJFI" or the "Company")

PORTFOLIO UPDATE

 

The Board of EJFI, which provides investors exposure to a diversified
portfolio of debt issued by smaller US banks and insurance companies and
participation in certain management fee income streams of EJF Capital LLC
("EJF"), is pleased to announce that EJFI has invested $5m on 15 July 2024, in
its second capital relief trade ("CRT") arranged by EJF (the "CRT
Investment").

 

This transaction has underlying exposure to prime jumbo mortgage pools
originated and held on balance sheet by a Southeastern US Bank.  The Manager
estimates that on an unlevered basis the CRT Investment will generate mid-teen
returns for the Company over an approximate seven-year duration. Jumbo
mortgages are those mortgages that are ineligible for purchase and
securitisation by the two main US government sponsored enterprises, Fannie Mae
and Freddie Mac, as they exceed the maximum conforming size of $766,550.
Such jumbo mortgages are made with the intention of being held on the balance
sheet of the issuing bank.

 

As set out in the monthly factsheet for May 2024, the Manager believes that
future CRTs on strong loan pools originated by small US banks may be a growing
and attractive opportunity for the Company as it presents a favorable
risk/reward security consistent with the Manager's expertise in regulatory
related debt issued by small US banks.

The Manager has also issued further publications on the two CRT transactions
the Company has participated in as well as an article describing the nature of
the US small bank CRT market.  These documents can be viewed at
https://www.ejfi.com/manager-communications/
(https://www.ejfi.com/manager-communications/) .

 

ENQUIRIES

For the Manager

EJF Investments Manager LLC

Adeeb Ahmed / Jay Ghatalia

aahmed@ejfcap.com (mailto:aahmed@ejfcap.com) / jghatalia@ejfcap.com

+44 203 752 6774 / +44 203 752 6776

 

For the Company Secretary and Administrator

Apex Financial Services (Alternative Funds) Limited

EJFIcosec@apexgroup.com

+44 204 549 0721

 

For the Brokers

Barclays Bank PLC

Dion Di Miceli / Stuart Muress

BarclaysInvestmentCompanies@barclays.com

 +44 20 7623 2323

 

Liberum Capital Limited

Darren Vickers

ejfinvestments@liberum.com

+44 203 100 2222

 

About EJF Investments Ltd

EJFI's objective is to provide shareholders with attractive risk adjusted
returns through regular dividends and capital growth over the long term. EJFI
generates exposure primarily to a diversified portfolio of loans issued by
financial institutions and related or similar assets in the U.S., U.K. and
Europe.

EJFI currently invests primarily in CDO Equity Tranches structured by an
affiliate of EJF Capital LLC, providing levered exposure to a highly
diversified portfolio of securities issued by U.S. financial institutions
(banks and insurance companies), these being Risk Retention Investments.

EJFI is a registered closed-ended limited liability company incorporated in
Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016
with registered number 122353. The Company is regulated by the Jersey
Financial Services Commission (the "JFSC"). The JFSC is protected by both the
Collective Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the discharge of
its functions under such laws.

The JFSC has not reviewed or approved this announcement.

LEI:  549300XZYEQCLA1ZAT25

Investor information & warnings

The latest available information on the Company can be accessed via its
website at www.ejfi.com (http://www.ejfi.com) .

This communication has been issued by, and is the sole responsibility of, the
Company and is for information purposes only. It is not, and is not intended
to be an invitation, inducement, offer or solicitation to deal in the shares
of the Company. The price and value of shares in the Company and the income
from them may go down as well as up and investors may not get back the full
amount invested on disposal of shares in the Company. An investment in the
Company should be considered only as part of a balanced portfolio of which it
should not form a disproportionate part. Prospective investors are advised to
seek expert legal, financial, tax and other professional advice before making
any investment decision.

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