Borrower Overview
 

TriLinc has provided financing to a marine logistics company in Nigeria that operates a fleet of Nigerian-flag tug vessels. The firm was established in 1984 by a local marine engineer with over 40 years of experience, and today is one of the few domestically-owned marine logistics providers. The borrower’s focus on timely, high-quality marine support services to its clients has spurred growth and positioned the company as a competitive alternative to large-scale international vessel operators. In contrast to the general lack of flexible financing from local banks, TriLinc’s financing offers the borrower access to an innovative and timely source of capital that will enable it to purchase a state-of-the-art tugboat vessel and continue executing its growth strategy. By catalyzing this growth, TriLinc’s loan will also support the borrower’s employee capacity-building initiatives and job growth forecasts.

Market Overview

Nigeria is classified as a middle income country by the World Bank.¹ Between 2009 and 2014, annual GDP growth rates have averaged approximately 5.74%.¹ Spurring this growth is Nigeria’s market size- the 7th most populus country in the world- and its burgeoning middle class, which has grown by 600% between 2009 and 2014.² Nigeria’s export activity has traditionally been dominated by petroleum and petroleum-related products with its cocoa, wood, and oil seed products representing marginal amounts of outbound trade.³ Conversely, the country’s main imports are concentrated in mineral fuels, electrical/ electronic equipment, machinery, vehicles, and plastics.³

Nigeria meets TriLinc’s country standards for its performance across relevant growth, stability and access metrics.⁴ As the largest economy in Sub-Saharan Africa with a GDP of $568.5 billion,⁵ the country’s developed financial market legal regime, trade promotion activities, and use of English as their official language have led the country to benefit from the estimated $37 billion in net foreign direct investment that flowed into the region in 2014.⁶ Robust domestic demand in Nigeria and across Sub-Saharan Africa helped spur regional GDP growth to 4.6% in 2014 and is expected to strengthen to 5.0% by 2017.⁷

Additional Sustainability & Impact Highlights

• In an effort to strengthen local human resource capabilities, the borrower provides cadet and “Officer of the Watch” certification training programs to qualified employees, as required by the International Maritime Organization’s International Convention on Standards of Training, Certification, and Watch keeping for Seafarers.
• The borrower’s compliance with the International Safety Management Code for the safe operation of ships and for pollution prevention is certified by an internationally-recognized certification board.
• As a socially responsible locally-owned Nigerian SME, the borrower emphasizes non-discrimination in the workplace and provides its employees with comprehensive health insurance and retirement benefits.
• An active member in its community, the borrower financially supports local charities that enhance human capital empowerment and youth engagement activities for children.

¹The World Bank, World Development Indicators Database: Nigeria, 2015. ²Standard Bank, Rise of the Middle Class in Sub-Saharan Africa, August 2014. ³International Trade Centre: Nigeria, 2015. ⁴There is no assurance that our investment in this company or this market will be successful. ⁵The World Bank, World Development Indicators Database: Nigeria; 2015. ⁶The World Economic Forum: Global Competitiveness Report; Nigeria, 2014. ⁷The World Bank, Global Economic Prospects, 2015.

The above information is as of the initial date of investment: July 23, 2015.

RISK FACTORS
There is no guarantee that TriLinc’s investment strategy will be successful. Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion. TriLinc selects investments and conducts operations on behalf of its clients, and will face conflicts of interest. Investment with TriLinc is not suitable for all investors. Securities Offered through CommonGood Securities, LLC, a member of FINRA and SIPC.

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.

< Return to Spotlight Map

Want to learn more? Contact Us.