REG - EJF Investments Ltd EJF Investments-EJFZ - Recent Investment Announcement

EJF InvestmentsAnnouncement

10/03/2025 10:15

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RNS Number : 8857Z  EJF Investments Ltd  10 March 2025

FOR IMMEDIATE RELEASE

 

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10 March 2025

 

EJF Investments Ltd

("EJFI" or the "Company")

           Recent Investment Announcement

Following the Company's announcement on 14 February 2025, 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 on 7 March 2025, the Company closed its investment in the CDO
Equity Tranche of TruPS Financials Note Securitization 2025-1 ("TFINS
2025-1"), a securitisation sponsored by EJF. This is the Company's eleventh
risk retention investment.

The Company through its subsidiary invested approximately $13.9 million (c.11%
of the Company's latest Reported NAV) in the CDO Equity Tranche of TFINS
2025-1. This was funded with proceeds received from its existing investment in
the CDO Equity Tranche of TFINS 2017-2, which was called. In addition, as part
of the transaction, the Company's subsidiary sold an existing US bank debt
position to TFINS 2025-1 for $1.97m, resulting in net cash proceeds of $1.97m.

The underlying collateral of TFINS 2025-1 mainly consists of trust preferred
securities, subordinated debt and surplus notes of 43 U.S. banks and 12
insurance companies with an aggregate par value of approximately $279.8
million. TFINS 2025-1 has a final maturity date in 2039 and is callable after
February 2027 at the option of the CDO Equity Tranche holders, with a
mandatory auction call commencing after February 2032.  The Manager believes
that the investment will generate a gross return in the mid-teens over the
life of the investment.

EJF CDO Manager LLC (the "CDO Manager") will serve as the collateral manager
for TFINS 2025-1 and will receive a 30-basis points p.a. management fee as
well as an incentive management fee equal to 20% of profits over a 10% hurdle,
subject to certain conditions. The Company will benefit from the economics
generated by the CDO Manager through the Company's 49% ownership interest in
the CDO Manager.

 

ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Mungo Hargreaves / Jay Ghatalia

MHargreaves@ejfcap.com / jghatalia@ejfcap.com

+44 20 3752 6775 / +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 Broker

Panmure Liberum

Darren Vickers

ejfinvestments@panmureliberum.com

+44 203 100 2222

 

Barclays Bank PLC

Dion Di Miceli/Stuart Muress/James Atkinson

BarclaysInvestmentCompanies@barclays.com

+44 207 623 2323

 

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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