LONDON (Alliance News) - Adamas Finance Asia Ltd Thursday said a fund in which it has invested has achieved a gross internal rate of return of 57% from newly-exited Project Jinhua.
Adamas has invested USD800,000 in BRJ China Credit Fund Ltd, which made the exit.
BRJ 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's investment manager.
With Project Jinhua, BRJ provided short-term finance for a real-estate developer in Jinhua, city in the Zhejiang province of China. The borrower has now repaid in full both the principal and interest on the CNY30 million.
The exits from Project Jinhua, Project Renheng and Project Changlelu have increased BRJ's net asset value, and the cash generated is available for future investment, Adamas said.
Furthermore, BRJ has recently funded another two deals, Project Innovation and Project Landmark.
Project Innovation is a USD520,853 loan to a natural resource trading company as an advance upfront payment for its oil trading business. A convertible bond issued by a Hong Kong main-board listed company is the collateral backing the project. It has an overall loan-to-value ratio of 20.55%.
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 current market cap of approximately USD1.0 billion, Adamas said.
Project Landmark is a CNY30 million loan to a company which is "able to purchase some shops at a substantial discount to market rate."
"BRJ will be purchasing the shops on the borrower's behalf, and hence the shops will be owned by BRJ as collateral with a loan-to-value ratio of 50%. The shops are located in a shopping mall in a prime location in Zhejiang, China," Adamas said.
Adamas Finance Asia shares were untraded in London Thursday, last quoted at USD0.70 per share.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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