Key Figures
| Total assets | € 2,241 mn |
| Equity | € 520 mn |
| Profit (before tax) 2022 | € 13.5 mn |
| Profit (before tax) 2023 | € 24 mn |
Our Strategy
Our Strategy
Our current strategy is to focus on high-rated assets mainly eligible for repo financing with relevant central banks (ECB, US Fed, Bank of England) and to finance the purchase of such assets via repo contracts and/or through our AAA-rated issuing programme vehicle (NJR Finance BV) with banks and institutional investors, targeting an overall portfolio size of circa €2 billions (with single positions ranging from €1 million to €60 million). The post-crisis overall market spreads widening raised many opportunities, as it became possible to buy very high quality, credit stable and seasoned ABS at attractive yields. This arbitrage enables NJR to remain focused on high-rated assets while maintaining a very low level of leverage.
Portfolio Composition
| Auto Loans and Leases (44.2%) | 44.2% |
| RMBS Prime Europe (38%) | 38% |
| Consumer Loans (12.1%) | 12.1% |
| SME Loans and Leases (5.1%) | 5.1% |
| CMBS (0.5%) | 0.5% |
| RMBS Prime Australia (0.1%) | 0.1% |
| RMBS Non Conforming Europe (0.1%) | 0.1% |
| Leveraged Loans CLOs (0%) | 0% |
Geographic Composition
| Germany (Aaa/AAA/AAA) (30.8%) | 30.8% |
| France (Aa1/AA/AA) (22.7%) | 22.7% |
| Netherlands (Aaa/AA+/AAA) (17.4%) | 17.4% |
| Spain (Baa1/A-/A) (9.8%) | 9.8% |
| Ireland (A2/A+/A) (5%) | 5% |
| Finland (Aa1/AA+/AA+) (4.6%) | 4.6% |
| UK (Aa3/AA/AA-) (4.4%) | 4.4% |
| Portugal (A3/BBB+/A-) (3.7%) | 3.7% |
| Belgium (Aa3/AA/AA-) (1.3%) | 1.3% |
| Italy (Baa3/BBB/BBB) (0.2%) | 0.2% |
| Australia (Aaa/AAA/AAA) (0.1%) | 0.1% |
Link to Portfolio
Sources of Financing
Sources of Financing
Repos constitute competitive short/medium term sources of financing which ensure a profitable arbitrage while mitigating liquidity and refinancing risks, as it finances high quality assets that are eligible for refinancing at central banks. NJR Invest also established a €435mn financing programme vehicle (NJR Finance BV) which received a AAA-rating (by S&P) on its first issued bonds (€10mn). In this regard, a series of eligibility criteria and portfolio constraints have already been put in place in maintain such rating on current and potential future issuance.
Our Team - Description
NJR and IRR staff currently consists of 3 people, NJR&IRR CEO, formerly CFO and senior portfolio manager with over 20 years experience in capital markets (fixed income, funds, derivatives and private equity), IRR Investment manager with 10 years experience in banking and capital markets and the Middle & Back Office Manager (over 15 years experience in Projects and Back-Office management).
NJR and IRR board is composed of 6 members, 5 from BRED Group (including the President and CFO).
Our objectives
| Investing/entering into eligible investments with a view to holding them to maturity |
| Arranging for the financing of the eligible investments via repo arrangements and/or issuance of AAA-rated CP, MTNs and/or bonds |
| Entering into hedging agreements in order to manage interest rate and currency risks associated with the investment portfolio and its financing |
| Managing credit and liquidity risks associated with the asset portfolio and related hedging agreements |
Our Team
Shareholders
NJR's share capital is composed of €389 million ordinary shares held by Bred Banque Populaire Group (“Bred”, rated A1/A/A). NJR is a direct subsidiary of Bred and is fully consolidated on Bred’s balance sheet. Bred is the largest French regional bank, member of the Banques Populaires Group, operating in the Paris region, Normandy and in the French territories outside Europe. Bred has a very strong customer base, posted a €319 mn consolidated net profit in 2023 and has a remarkable 16% Tier 1 ratio.
Management Report
Link to BRED
Link to ECB
IRR
IRR
IRR SA is a subsidiary of NJR SA who in turn is a subsidiary of BRED Banque Populaire (BRED). Its purpose is to invest in private-equity and/or real estate transactions. The capital of IRR amounts to €36 mn and IRR is fully consolidated on BRED’s balance sheet. Most of IRR assets used to consist of financial commitments in Aurora Capital SCA; Aurora Capital's built a large portfolio of commercial real estate in France with attractive rental yields and satisfied risk conditions. Since 2014, IRR has diversified its portfolio with 19 investments across the globe in a variety of asset classes (Office, Retail, Logistics, Residential, Charter schools), according to various strategies (Value-add, Core, Opportunistic, Development). IRR's total investments and commitments currently account for €279MM.
Management Report
NJR reported a gross profit of €24mn in 2023. The portfolio size is currently €2bln, mainly invested in European senior ABS, eligible for repo financing at the ECB. The bulk of NJR portfolio is invested in seasoned RMBS and ABS across Europe. Based upon a very prudent and selective credit strategy, NJR has built a conservative, high-quality and granular portfolio over the years which outperformed the market both in terms of underlying credit performance and spread evolution. Since 2008, market conditions allowed NJR to purchase high-quality assets at very attractive levels. The credit performance of the portfolio remains extremely solid despite the gloomy economic environment thanks to NJR's conservative and tight investment strategy.
EPBF
EPBF
EBPF is incorporated as a Payment Institution in Belgium since 2011 in order to offer European corporate and institutional clients the possibility to fully benefit from the uniformed European payments market (Single European Payments Area - SEPA). As a financial institution EPBF is operating under the supervision of the National Bank of Belgium. EPBF is a subsidiary of NJR SA who in turn is a subsidiary of BRED Banque Populaire (BRED). The capital of EPBF amounts to 7.000.000 € and EPBF is fully consolidated on BRED’s balance sheet. Our goal is to maximize customer satisfaction by offering secure, efficient and customer oriented payment and cash management solutions to European based corporate and institutional clients. Therefore we are specialized in the processing of high volume flows, more specific SEPA Credit Transfers and SEPA Direct Debits. In order to further optimize the treasury we offer cash management solutions like cash pooling structures. EPBF also proposes Isabel, SWIFT or an EBICS connection in order to guarantee a secure transmission of payment and reporting files. All our solutions are tailor made and used by European corporate and institutional clients active in various sectors (energy, telecom, retail, …). In 2023 EPBF treated 147 million SEPA transactions for a total value of 40 billion €. Our offices are located at Chaussée de la Hulpe 181, 1170 Brussels.
