Trine provides partial investment protection in collaboration with the U.S. International Development Finance Corporation (DFC). Investment protection is a way to mitigate risk and enables more people to invest through Trine. This means that in the case where a borrower is not able to repay their loan, you as an investor are guaranteed, subject to the terms and conditions of the DFC guaranty, to get back some of the amount you originally invested.
What loans are eligible for the investment protection?
Loans are eligible for the investment protection as long as they meet the terms and conditions set by DFC. For a loan to qualify for investment protection, in addition to use of proceeds and structuring requirements, the borrowers need to be non-sovereign, private enterprises that are Clean Energy Borrowers established and operating under the laws of, or using the proceeds for investment in, designated Eligible Countries, as defined below:
- “Clean Energy Borrowers”, including individuals, households, companies and municipalities that are investing in clean energy projects, including but not limited to renewable energy, liquified natural gas-based energy, energy efficiency, green mortgages, repairs, upgrades, maintenance, improvements, and other energy savings opportunities, but excluding coal, oil, charcoal and nuclear-related investments.
- “Eligible Countries”, including Belize, Benin, Brazil, Colombia, Costa Rica, Democratic Republic of the Congo, Dominica, Ecuador, El Salvador, Ethiopia, Ghana, Grenada, Guatemala, Guyana, Haiti, Honduras, India, Jamaica, Kenya, Mexico, Mozambique, Nigeria, Pakistan, Paraguay, Peru, Rwanda, Senegal, Sierra Leone, St. Lucia, St. Vincent and the Grenadines, South Africa, Suriname, Tanzania, Uganda, and Zambia. Notwithstanding the foregoing, no loans may be placed under coverage of this Guaranty to Qualifying Borrowers in (or who intend to use proceeds of the Loans in) Costa Rica, El Salvador, Guatemala, Jamaica, Senegal, Sierra Leone, or Uganda (collectively, the “FGA Countries”) until the DFC has confirmed in writing in accordance with the agreement.
How much does the investment protection cover and how do I find out if a loan is covered?
Investment protection provided by the DFC would cover 50% of outstanding losses of principal in the event that a borrower defaults on a loan. If a loan is covered by DFC's investment protection, it will be stated on the loan offer page with a box on the right-hand side, as shown below:
How does the process look in order for the investment protection to be paid out to investors?
Trine manages the debt recovery process on behalf of our investors. In the case where a loan that is eligible for the investment protection defaults, Trine must submit a claim request to DFC with detailed information confirming that the loan default process has followed a specific set of requirements.
It is therefore important to note that this includes a process of diligently pursuing and documenting reasonable debt collection efforts in respect of the qualifying loans. The process of retrieving the investment protection can therefore take time and needs to be approved by DFC before it can be executed.
Please note that it is not until DFC has determined whether the requirements for the claim request have been met and they have given formal approval that any funds under the investment protection can be paid out.
Investing with Trine involves risk that can result in the loss of some or all of your investment and returns are not guaranteed. Never invest more than you can afford to lose. Trine AB (org.nr 559003-1463) is a Swedish authorised payment institution under the supervision of The Swedish Financial Supervisory Authority (Finansinspektionen). Trine conducts payment services in accordance with the Payment Services Act (2010:751).