DARP Adamantine (IFC-35994)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 24, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ASCENDANCY CARIBBEAN I LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 26, 2018

Disclosed by Bank Jan 11, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project establishes an IFC Distressed Asset Relief Program (DARP) investment platform in the Caribbean and Central America to support the acquisition and resolution of non-performing loan (NPL) portfolios alongside of Proyectos Adamantine, a Mexican servicer. The NPL portfolios will include mortgage and consumer loans. The project will provide a banks with an integral solution to the resolution of its NPLs by providing a programmatic approach to offloading these assets from their balance sheet through a market-based mechanism. The result will be improved liquidity to devote resources towards originating new transactions, thus increasing the credit offer.

Proyectos Adamantine is a financial services company that specializes in the administration, collection and resolution of non-performing residential mortgage and commercial loans and consumer retail loans, and the titling and sale of foreclosed properties. Proyectos Adamantine was established in 2000 in Mexico and is 100% owned by Ascendancy Management, a Mexican Asset Management Company, Adamantine is a CNBV regulated as a SOFOM (Mexican Non-Bank Financial Institution) and is rated by Fitch Ratings and by HR Ratings. Adamantine provides collection and administrative services for its clients, as well as related services including due diligence, portfolio analysis and valuation, debtor or collateral location, collateral valuation and debt restructuring.

The project has been categorized as FI-3 in accordance with IFC’s Sustainability Framework.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total cost of the project is estimated at US$150 million of which IFC is investing up to US$ 3.33 million in equity and up to US$46.67 million in a senior loan. The remaining US$ 75 million will be funded by the Sponsor.

The projected will be funded through a Master SPV that will be established as a Delaware-based entity and each portfolio purchase will be funded through sub-SPVs in each local jurisdiction (local entities) in countries across the Caribbean and Central America.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Proyectos Adamantine is a financial services company that specializes in the administration, collection and resolution of non-performing residential mortgage and commercial loans and consumer retail loans, and the titling and sale of foreclosed properties. Proyectos Adamantine was established in 2000 in Mexico and is 100% owned by Ascendancy Management, a Mexican Asset Management Company, Adamantine is a CNBV regulated as a SOFOM (Mexican Non-Bank Financial Institution) and is rated by Fitch Ratings and by HR Ratings. Their ratings as Servicer and Master Servicer are above average and their counterparty rating is best in the sector. Adamantine provides collection and administrative services for its clients, as well as related services including due diligence, portfolio analysis and valuation, debtor or collateral location, collateral valuation and debt restructuring.


Contact Information
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Project Contact: Antonio M Dávila
Adamantine
Office Address: Insurgentes Sur 1647 Piso 5, México DF, CP 03900
Telephone No.: (5255) 5447 8311
Email Address: ad@adamantine.com.mx 
Website: http://www.adamantine.com.mx; http://www.adamantinefund.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works