LONDON (Alliance News) - Adamas Finance Asia Ltd Wednesday said that the Greater China Credit Fund (GCCF), an investment fund into which the company invested USD1 million in September 2013, has achieved a gross internal rate of return of 22% from newly-exited credit finance project Project Wealth.
In a statement, Adamas Finance Asia also said it recently received a second semi-annual dividend distribution of USD75,300 from its investment in the fund.
This follows an initial dividend payment, also of USD75,300, received from the fund in March 2014. According to Adamas Finance Asia, the payment of the dividends means its investment in the fund has to date yielded an annual dividend return of 15.06%, ahead of the 8% annual dividend targeted by the fund.
GCCF was launched in August 2013 by Hong Kong-based Adamas Asset Management (HK) Ltd, which since February 2014 has been has been acting as Adamas Finance Asia 's investment manager.
"This new high-yield exit from Project Wealth, together with the first-year dividend of more than 15% from our investment in GCCF, provides a clear example of the potential of providing credit finance in China," Adamas Finance Asia Chairman John Croft said in a statement.
"Adamas' on-the-ground understanding and experience bring a solid underpinning to our strategic repositioning as a provider of credit-finance," Croft added.
According to Adamas, GCCF provided bridging finance for a Hong Kong-listed resources company under Project Wealth. It said the borrower has now repaid the principal and interest on the HKD80 million loan, which was secured on 10% of a magnetite-sand mine located in the Philippines with a whole-mine valuation of USD500 million. It was further underpinned by 39.23% of the outstanding shares of the listed company.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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