Limit how many loans a company can make without fully repaying at least one loan#127

According to https://trine.com/our-progress Ecoligo has taken up 24 loans, and are in the process of taking up a 25th, without having repaid in full even a single one. Actually they have at most repayed 6% of a loan, which they have done with three of the 24 loans.

Ecoligo is not alone in having taken up multiple loans without having repayed any in full.

This seems reckless to me. Shouldn’t a company have to show that they are able to repay a loan in full before they can take up 5 or 10+ loans?

I’m not saying they should have to repay every single loan before taking a new, but it seems to me that there should at least be a limit to the number of loans a specific company can make before proving that they are capable of repaying one loan in full.

Hi Børge,

Thank you for your feedback. We understand your concern about borrowers taking multiple loans without fully repaying.

It’s essential to consider the dynamics of our investment model. We focus on solar contracts tied to long-term projects spanning 10-15 years.

The repayment structure for these loans is tied to the cash flows generated by each specific project. Our approach ensures that the loan tenure aligns with the underlying project cash flows, minimizing financial strain on the borrowers. This means that the repayments are sustained by the revenue generated from the solar projects themselves.

Before extending loans, we also conduct thorough due diligence to assess the borrower’s capability to make repayments. We want to emphasize that measures are in place to protect investor interests and ensure project sustainability.

All the best,

Liz