- Eastern and Southern African Trade Advisers Limited (“ESATAL”) is a joint venture between Eastern and Southern African Trade and Development Bank (“TDB”) and GML Capital LLP (“GML Capital”). ESATAL is a limited company domiciled in Mauritius which acts as fund manager for Eastern and Southern African Trade Fund (“ESATF”).
- GML Capital is authorised and regulated by the UK Financial Conduct Authority and is a registered investment adviser with the US Securities and Exchange Commission.
- TDB is a multilateral development finance institution and a leading provider of trade finance in Africa. TDB has identified substantial additional needs for trade finance with attractive risk/return, which will support economic growth in one of the fastest-growing regions in the world.
- In August 2019 ESATF was launched as a fund in accordance with Article 9, and will operate in compliance with Article 4, of TDB’s Charter by seeking to invest mainly in trade finance transactions that involve countries in Eastern and Southern Africa, although opportunities outside of that region are not necessarily excluded. ESATF aims to invest in transactions with an average life of less than two years and which will typically be held to maturity.
- ESATF aims to capitalise on anticipated GDP growth in TDB’s regional member countries and the consequent demand with a view to facilitating trade and commodity finance in Eastern and Southern African economies. The Fund seeks to deliver returns of LIBOR + 3-5% with low volatility and with an emphasis on impact investing.
- Trade finance loans made by ESATF to borrowers in Eastern and Southern Africa might benefit under certain circumstances from the preferred creditor status enjoyed by TDB. The Fund will seek to provide attractive, secure and uncorrelated investment returns to investors in the range of USD LIBOR + 3-5% per annum after all fees and expenses.
- ESATF will also adopt a socially responsible stance towards advancing economic and social development through impact investing. This will include, but not be limited to, supporting small and medium-sized enterprises together with facilitating the transfer of financial expertise to borrowers and the transfer of investment management expertise to African investment professionals.