28th Jan 2016 18:16
LONDON (Alliance News) - Closed-ended investment company City of London Group PLC Thursday said that it believes there is likely to be a "significant impairment" to the value of its investment in Trade Finance Partners Ltd.
Trade Finance Partners is seeking to replace its borrowing facility with Macquarie Group Ltd, the company said, however Macquarie has restricted the scope of business which it is willing to consider funding. This has constrained Trade Finance Partners ability to make advances, City of London said.
"In addition a limited number of advances has been identified as requiring provisions or write offs including an advance to a customer which Trade Finance Partners is in the process of placing into administration," City of London said.
However, it is "too soon" to quantify the financial hit to the value of its investment in Trade Finance Partners accurately, City of London said.
City of London's other major investment, Credit Asset Management Ltd, in which it has an 85% stake, continues to make good progress, it said.
Shares in City of London last closed at 23.75 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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