Non-Ferrous Metal Trader

Borrower Overview

TriLinc has provided financing to a trader of non-ferrous metals conducting operations in Southeast Asia and South America. The company makes it possible for smaller retail customers to purchase small quantities on a “just-in-time” delivery basis, at an affordable contract cost. This strategy helps the firm manage risk such as price, logistics, and storage. TriLinc’s financing will underwrite underlying sales contracts for London Metal Exchange (“LME”) grade copper and nickel with large regional buyers who onsell to various small and medium size enterprises (“SMEs”) throughout India. Typically, the SME customers cannot buy at a large scale due to the unavailability of bulk buying pricing schemes.


Market Overview

India’s economic growth (one of the highest in the world at 7%)1, is increasing the demand for enhanced infrastructure and increased access to consumer products. Copper and nickel play a large role in India’s infrastructure development. 65% of nickel is used in the manufacturing of stainless steel, which is used extensively in engineering, electrical and automobile products, as well as infrastructure.2 Increasing the copper and nickel supply within India enhances the economic viability of the country and supports the growing infrastructural demands of the population.

Although Hong Kong is a high-income country, an exception was made for this borrower’s high impact in India, which meets TriLinc’s standards for its performance across relevant growth, stability, and access metrics.3 The Borrower’s international trade activity helps close the global trade finance gap of $1.5 trillion and opens up access to important base metals, supporting infrastructure within India.4 In 2017, India ranked 2nd across the South Asia region on the World Bank’s Ease of Doing Business Index.5 Corruption, access to financing, and an inadequate supply of infrastructure are seen as the most pressing hurdles currently facing the country’s productivity and competitiveness.6 As the largest economy in the South Asia region5 with a GDP of $2.3 trillion, India’s good market efficiency, financial market development, and business sophistication have led the country to benefit from the estimated $50.2 billion in foreign direct investment that flowed into the region in 2016. 1 Robust domestic demand across the South Asia region has helped spur region GDP growth to 6.5% in 2017, which is projected to grow to 7.2% by 2019. 7

Additional Sustainability & Impact Highlights

  • High standards – as a producer, the firm reports that it has obtained an ISO 9001 Quality Management System certification, meaning they are recognized as a high standard quality LME brand.
  • Promoting Energy Savings – the company reports that it actively encourages energy savings and waste reduction within the office with recycling, elimination of plastic tableware, and power reduction.

1There is no assurance that our investment in this company or this market will be successful. 2 3Asian Development, $1.5 Trillion Trade Finance Gap Persists, 2017 4The World Bank, Data, South Asia 2016 5World Economic Forum, Global Competitiveness, 2017 6The World Bank, Data, South Asia 2016 7The World Bank, Global Economic Prospects, January 2018

The above information is as of the initial date of investment: July 10, 2017.

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.