30th Apr 2015 13:57
LONDON (Alliance News) - GLI Finance Ltd is seeing encouraging origination of loans and a number of potential partnerships that could increase lending, Chairman Patrick Firth will say on Thursday.
GLI provides finance to smaller businesses. The AIM-listed company invests in loans to such businesses and originates finance for them through finance platforms.
"The development of all of our platforms is progressing well, and there are some extremely encouraging signs in terms of overall loan origination levels and pipeline of potential partnerships that could boost lending significantly," Firth will tell shareholders at the company's annual meeting at 1500 BST.
"In order to provide funding alongside that of GLI, our US platforms have in aggregate agreed over USD1.2 billion of lending capacity with third party investors, which is a positive indication of the quantum of the opportunity opening up to our platforms around the world," Firth will say.
According to the chairman, Sancus is close to opening an office in Gibraltar. The plan is for the branch to be operational by the end of June, assuming regulators approve it. GLI bought Sancus, a peer-to-peer lender, in December 2014.
"Sancus is also progressing with its previously advised intentions of opening offices in both Malta and the Isle of Man and is also exploring further locations including the Cayman Islands," Firth is to say.
GLI is open to new opportunities that can develop its range of platforms, according to the chairman, who said the company will pursue only those which can make a big difference. He said that's because of the potential size of what can be done through the company's existing platforms.
Work is still being done on launching a closed-end fund that will focus on "a loan portfolio diversified by geography, size of loan, type of lending and duration".
"We believe that our unique position, in having detailed insight into the platforms with whom we work and a seat on the board of each of our platforms will be of great benefit to the fund, both in absolute and relative terms," Firth says.
"Talks continue with public bodies in a variety of jurisdictions about leveraging our unique knowledge base to develop alternative finance as a material source of SME finance," he adds.
In addition, GLI is working on the listing of its zero dividend preference shares.
GLI shares were down 1.2% at 55.56 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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