LONDON (Alliance News) - Adamas Finance Asia Ltd Thursday said that the BRJ China Credit Fund Ltd, into which it has invested USD800,000, achieved a gross internal rate of return of 28.19% with its latest exit from a credit-finance investment project, Project Innovation.
The exit from Project Innovation has increased BRJ's net asset value, and the cash generated is available for future investment, Adamas Finance Asia said.
BRJ is an investment fund launched by Adamas Finance Asia's investment manager, Hong Kong-based Adamas Asset Management (HK) Ltd, to provide capital for Chinese small and medium-sized enterprises in need of short-term bridging finance.
According to Adamas Finance Asia, with Project Innovation, BRJ provided credit funding of USD521,000 to a natural resource trading company that needed to make an advance payment on an oil trading arrangement.
"In line with the strategic repositioning of the company, we are continuing to plan the orderly disposal of the existing asset portfolio to generate cash for investment in high-yield corporate lending in Greater China, where a large number of opportunities such as Project Innovation exist," Chairman John Croft said in a statement.
"As the company works towards that objective, this latest high-yield exit for the BRJ Fund provides another example of the solid capabilities provided by the award-winning Adamas investment teams in Asia," Croft added.
The collateral backing for the project was a convertible bond issued by a Hong Kong main-board listed company, with an overall loan-to-value ratio of 20.55%, Adamas Finance Asia said.
The collateral was further underpinned by a personal guarantee from one of the main shareholders of another Hong Kong main-board listed company with a market cap of about USD1 billion, the company added.
The loan tenor was three months but the borrower opted for an early repayment option two months from drawdown.
Adamas Finance Asia shares were Thursday untraded at USD0.725.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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