REG - EJF Investments Ltd EJF Investments-EJFZ - Portfolio Update

EJF InvestmentsAnnouncement

30/04/2024 09:45

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RNS Number : 5838M  EJF Investments Ltd  30 April 2024

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30 April 2024

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

Portfolio Update

EJFI, which provides investors exposure to primarily a diversified portfolio
of debt issued by smaller US banks and insurance companies, notes that one of
its issuers, Republic First Bancorp ("Republic First"), was seized by
Pennsylvania regulators on Friday, 26 April 2024 and subsequently sold to
Fulton Bank. EJFI has exposure to notes issued by Republic First through two
of its CDO Equity Tranche investments.

 

Based on the current mechanics of the sale to Fulton Bank, it is the view of
the Manager that there may not be any material recovery of the debt issued by
Republic First.  If the cash collected by the relevant CDO at the end of its
life is insufficient to pay all of its investors, then such losses (as reduced
by any over-collateralisation at each deal level) are absorbed first by the
CDO Equity Tranches of each of the respective deals.

 

The Manager is monitoring the situation closely, and notes that as reported in
the Performance Report for 30 September 2023 NAV, a mark down was already
taken on relevant CDO Equity Tranches considering the broader market as well
as the deferral on this exposure. Absent any recovery and considering the
current over-collateralisation in the respective deals, the Manager estimates
there could be a potential loss of up to 1% of the Company's most recently
published NAV (March 2024) on a look-through basis.

 

The Manager believes that the underlying issues Republic First Bank was faced
with were company-specific and not reflective of the current broader market
sentiment.

 

 ENQUIRIES

For the Manager

EJF Investments Manager LLC

Peter Stage / Jay Ghatalia

pstage@ejfcap.com / jghatalia@ejfcap.com

+44 203 752 6775 / +44 203 752 6776

 

For the Company Secretary and Administrator

BNP Paribas S.A., Jersey Branch

jersey.bp2s.ejf.cosec@bnpparibas.com

+44 1534 709 198/ +44 1534 813 967

 

For the Brokers

Barclays Bank PLC

Dion Di Miceli / Stuart Muress

BarclaysInvestmentCompanies@barclays.com

 +44 20 7623 2323

 

Liberum Capital Limited

Darren Vickers / Owen Matthews

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 Equity Tranches of CDOs 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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