Oi Wah Pawnshop Credit Holdings Announces HK$112 Million Investment In PACM Fund

HONG KONG SAR - In a significant move within the financial sector, Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319.HK, "Oi Wah") alongside PACM Group (Holdings) Limited ("PACM Group"), has announced a strategic partnership aimed at bolstering their investment portfolio. Oi Wah Mortgage Limited, an indirect wholly-owned subsidiary of Oi Wah, has inked a Subscription Agreement with the General Partner, a joint venture between PACM Group and a direct wholly-owned subsidiary of Oi Wah. This agreement entails Oi Wah subscribing for limited partnership interests worth HK$112.0 million in PACM OW Global Special Situation Fund II L.P. ("the Fund").

Upon the completion of this subscription, Oi Wah Mortgage Limited will be officially designated as a limited partner of the Fund. The primary goal of the Fund is to secure long-term capital appreciation by employing a variety of investment strategies. These include asset-backed direct lending, non-performing debt acquisition, acquisition financing, stretch senior financing, project financing, bridge financing, and other debt-related strategies. The Fund will focus its investments in developed markets that operate under a common law jurisdiction legal framework, targeting regions such as Australia, Canada, Hong Kong, Singapore, the United Kingdom, and the United States.

Mr. Edward Chan, Chairman and CEO of Oi Wah, expressed optimism regarding the future prospects of the mortgage business amidst adjustments in countercyclical macroprudential measures for property mortgage loans and other related supervisory requirements. He believes that this Subscription Agreement will not only provide additional resources for both entities but also aid in expanding Oi Wah's overseas market segment, revenue sources, and customer base. Mr. Chan emphasized the importance of the long-term cooperative relationship between Oi Wah and PACM Group in consolidating their industry position.

On the other hand, Mr. Francis Ng, Managing Director and Chief Investment Officer of PACM Group, acknowledged the challenges posed by the current global real estate market. Despite these challenges, he highlighted the presence of excellent credit investment opportunities in markets where PACM has been established since its inception in 2018. This Fund represents PACM Group's second private credit fund launch and marks their fourth fund launch overall when including two Real Estate Private Equity funds launched in 2023. Mr. Ng praised his team's ability to originate and execute new deals while managing market risks effectively during property market price adjustments.

The collaboration between Oi Wah and PACM Group through this Subscription Agreement signifies a mutual commitment to exploring new investment avenues and adapting to market dynamics. Both parties are poised to leverage their expertise and resources to navigate the complexities of the global real estate market successfully.

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The issuer is solely responsible for the content of this announcement.