Borrower Overview
TriLinc has provided financing to a Peruvian insulated cable and wire manufacturer and distributor, founded in 2005, that supports various industries throughout the country through introducing the latest technological innovations to the Peruvian market. The borrower was the first to test and incorporate the low and medium voltage braided aerial cable, which served as the foundation to large electric network extension projects in various parts of the country. Additionally, the borrower was the first company in Peru to obtain an ISO 9001 Quality Management System certification and has since obtained an ISO 14001 Environmental Management System certification and OHSAS 18001 Occupational Health & Safety Management certification. Having worked with over 80 business partners, the company has also established a global presence and plans to eventually aid in electrical infrastructure development internationally. TriLinc’s financing will support the acquisition of raw materials that will enable a boost in production and the buildup of inventory levels to meet client demand.
Market Overview
Peru is the seventh largest economy in Latin America and is classified as a middle income country by the World Bank.1 Real GDP growth over the last 5 years (2008-2012) has averaged more than 6.5%.1 Since 2002 (2002-2012), real GDP growth has averaged nearly 6.4%.2 Major export sectors include copper, gold, zinc, textiles, chemicals, pharmaceuticals, machinery, and fish meal.
Peru meets TriLinc’s country standards for its performance across relevant growth, stability and access metrics.3 It has been one of the fastest growing economies in the world in recent years, with a steadily improving macroeconomic environment including foreign reserves.4 In 2013, it ranked second out of 32 countries in Latin America and the Caribbean on the World Bank’s Ease of Doing Business index.5
Additional Sustainability & Impact Highlights
- The borrower’s ISO 9001 Quality Management System certification demonstrates the company’s ability to consistently offer products that meet customer and applicable statutory and regulatory requirements.
- One of the borrower’s main copper suppliers adheres to the UN Global Compact and Global Reporting Initiative, demonstrating the supplier’s commitment to ensuring corporate responsibility and environmental management within its supply chain.
- As an effort to maintain an environmentally sustainable workplace, the borrower has incorporated energy saving and water conservation practices into its operations.
1 IMF, World Economic Outlook Database, April 2013 2IMF 2013 3There is no assurance that our investment in this company or this market will be successful. 4World Bank World Development Indicators Database, 2013 5World Bank, Doing Business 2014, October 2013
The above information is as of the initial date of investment: May 2, 2014.
This borrower is no longer a TriLinc fund investment.
TriLinc originally performed an SDG mapping exercise in December 2017 to map all of our borrower companies, both current and exited from our portfolios, to specific SDGs based off of business activity. TriLinc’s official SDG alignment methodology was not finalized until June 30, 2018. For borrowers that had exited TriLinc’s portfolios prior to this time period, the selected SDGs for these borrower are a reflection of what TriLinc believes would have been the SDG alignment if 1) the SDGs had been in effect and 2) TriLinc had integrated the SDG alignment while the company was in the portfolio. The SDG mapping presented does not include input from Investment Partners or borrower companies given that the companies were no longer in the portfolio when the alignment was finalized.
An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.
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