12 Dec 2012 07:00
LSE: CIN
12 December 2012
City of London Group plc ("COLG" or "the Company")
SME finance mandate from UK Government
COLG is pleased to announce that it has been shortlisted to manage an initial £5m SME finance mandate on behalf of the UK Government Department of Business, Innovation and Skills through the Business Finance Partnership programme. Matched funding will be provided from a combination of COLG's own balance sheet from realising some of the Company's available-for-sale investments and third party funding to co-invest alongside the Government funds.
The mandate will be managed by Credit Asset Management Limited ("CAML"), a subsidiary of COLG. CAML provides asset backed finance to SMEs and loans to professional firms.
The Business Finance Partnership was announced by the Government on 29 November 2011 as part of an initiative to support SME growth across the UK. In the 2012 Budget the Government allocated £100 million to increase the flow of credit from 'non-traditional' channels. This funding will reach UK smaller businesses with a turnover below £75 million through the Small Business Tranche via Capital for Enterprise Limited (CfEL).
Eric Anstee, CEO, commented:
"I am delighted that COLG has been chosen to partner The Department for Business Innovation and Skills in this programme and the endorsement of our traditional merchant banking model that this represents. This confirms the strength and integrity of the CAML platform and its ability to secure institutional investor interest in the SME funding sector."
Eric added:
"We look forward to sourcing similar mandates from institutional investors looking for attractive returns from backing UK SMEs."
Enquiries:
City of London Group plc | +44 (0)20 7628 5518 |
Eric Anstee | |
N+1 Singer | +44 (0)20 7496 3000 |
Jonny Franklin-Adams | |
FTI Consulting | +44 (0)20 7269 7132 |
Ed Gascoigne-Pees |
Notes to Editors
City of London Group plc is fully listed on the London Stock Exchange plc (LSE symbol CIN).
The Company's strategy is to build a quality Financial Services Group centred on Specialist Financing and Alternative Fund Management. The Company believes there are particular opportunities in the SME and professional services sectors as major national and foreign banks limit new lending to these borrowers. It therefore seeks to identify and exploit product niches and business models in these sectors where they are supported by strong day to day management teams, providing initial equity, working capital and seed funding for those teams.
Since 2009, COLG has developed four specialist financing funds, pledging significant seed funds to Therium Capital Management Limited, a third party Litigation Funder, Credit Asset Management Limited and Professions Funding Limited, which respectively provide asset backed finance to SME's and working capital loans to professional practice firms and finally Trade Finance Partners Limited, a trade finance provider to the SME market.