Provision of Finance Arwon Finance Pty Ltd (“Arwon”), a 100%...

Provision of Finance

Arwon Finance Pty Ltd (“Arwon”), a 100% owned subsidiary, is a provider of finance, with the major focus being the provision of finance to investors in agricultural projects promoted and managed by the Group. Arwon also continues to manage loan portfolios that are owned by a subsidiary of the Commonwealth Bank of Australia and Burlington Loan Management Limited.
In June 2016, the Group entered into agreements to sell a portfolio of loans advanced to plantations investors and to commence loan funding programmes with two Australian financiers. Settlement of the sale of the first portfolio of loans occurred in August 2016. Under the terms of the agreements, non-performing loans will be repurchased by the Group. Each loan is secured by the underlying Indian Sandalwood plantation asset and provides full recourse to the borrower.
The monetisation of the loan portfolio illustrates the Group's ability to provide an ongoing option for the Group in the management of its capital requirements.