(Alliance News) - Charter Court Financial Services Group PLC said Friday it agreed to sell its residual economic interest in mortgage securitisation firm Precise Mortgage Funding 2019-1B PLC for GBP6.2 million in cash to JP Morgan Inc.
Charter Court said the deal - expected to complete next Wednesday - would result in a total pretax gain of GBP28.8 million. The sale will also reduce gross assets by GBP390 million, of which GBP207 million will be risk-weighted assets.
"This transaction demonstrates our proactive approach to asset-liability and capital management and our ability to execute capital markets transactions when we judge conditions to be right to generate incremental shareholder value," Charter Court Chief Financial Officer Sebastien Maloney said.
"The demand for the certificates and the final terms achieved further reflect investor confidence in the quality of our underwriting and our track record of strong loan book growth while maintaining a market-leading cost of risk", Maloney added.
Charter Court will utilise the funds raised to reinvest in new loan originations in its specialist lending segment as well as other ongoing business activities.
Shares in Charter Court were 0.1% lower at 315.84 pence in London on Friday.
