US Dollar-denominated Corporate Bonds

1 December 2022

JADE ROAD INVESTMENTS LIMITED

("Jade Road Investments", "JADE", the "Company" or the "Group")

Jade Road Investments Limited (AIM: JADE), the London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns provides the following update concerning its US Dollar-denominated secured debt, issued as loan notes with a 12.5% coupon ("Loan Notes").

Further to discussions with all Loan Note holders ("Noteholders"), the Company has agreed the following changes to the structure of the Notes with Noteholders:

•       extended maturity of the Loan Notes issued to 31 December 2023;

•       increased the interest rate payable on the principal amount of the Loan Notes outstanding to 15% per annum from the date of the Supplemental Instrument;

•       increased the interest rate payable on the principal amount of the outstanding Loan Notes to 16% per annum where US$1,800,000 or more of the principal amount of the Loan Notes remains outstanding by 30 June 2023; 

•       a "priority return" provision requiring the Company to utilise proceeds received by it pursuant to an equity placing of more than £10,000,000 ("Qualifying Placing") or sale of any company, body corporate, asset, instrument, or undertaking (including any contractual rights) within the Company's existing portfolio ("Asset Sale") in making repayment on the Notes. Any such repayment would be limited to 10% of the net proceeds received by the Company pursuant to a Qualifying Placing, or 65% of the net proceeds received by the Company pursuant to an Asset Sale; and

•       warrants: Loan Note holders will be issued with 3-year warrants equivalent to 5% of the next share issuance undertaken by the Company with a strike price which is a 50% premium to the price of such share issuance.

The Company has received the required formal consent of Noteholders to these terms and accordingly has today executed a supplemental loan note instrument and warrant instrument.

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About Jade Road Investments

Jade Road Investments Limited is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk-adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, and is well-diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income-generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property. 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.