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Peer2Peer Finance News | November 24, 2017

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P2PGI sells off “significant” stake of US loans

P2PGI sells off “significant” stake of US loans
Marc Shoffman

PEER-TO-PEER investment trust P2P Global Investments (P2PGI) said it has sold off a “significant proportion” of its US consumer loans as it continues its shift from the region and towards secured assets.

The London-listed investment trust said in a stock market update on Monday that it has agreed to sell off some of its exposure to US consumer loans, which will reduce its net exposure to the region by £36.9m or 4.56 per cent of its net asset value (NAV).

A spokesperson said that the buyer could not be named.

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The statement said the investment trust is confident of hitting its six to eight per cent target return within the 18-month time frame set in May 2017.

“The transaction and related provisions are expected to reduce the company’s overall NAV by less than one per cent and will also have the effect of reducing the company’s leverage and forex hedging requirement,” the announcement said.

“The board is pleased to report that the investment manager remains confident in its ability to continue the transition of the portfolio into opportunities with a greater exposure to secured assets.”

P2PGI, whose manager MW Eaglewood recently merged with Pollen Street Capital, also said it will unveil more details of its new strategy in a market update by the end of November.

The investment trust is currently trading at a discount to NAV of 20.1 per cent.

Read more: P2PGI re-enters Numis “buy” list thanks to Zopa securitisation