Indo Trans Logistics Corporation (ITL), a logistics provider in Vietnam and Indochina, has received a USD15.8 million investment from Templeton Strategic Emerging Markets Fund IV LDC (TSEMF IV).
ITL’s services range from air, sea, road and rail transport to warehousing and last mile delivery. The company is building out its logistics services in Vietnam and Indochina as trade continues to expand there and the emergence of e-commerce is also driving demand for logistics fulfillment. The use of proceeds from the investment is expected to fund ITL’s organic growth and working capital.
With over USD110 million in revenue for the year ended 2014, ITL was ranked No.1 among Vietnamese companies providing 3PL (Third Party Logistics) services. It is also ranked Top 3 of 20 Vietnam Logisitics Companies, certified by Vietnam Logistics Association (VLA). ITL has been included in VNR’s Top 500 Biggest Company in Vietnam for eight consecutive years from 2007-2014 and is also a Top 100 Trusted Brand in Vietnam.
Zulkifli Baharudin, Chairman of ITL, says: “We believe TSEMF IV's investment is a validation of our goal to be a regional leader in logistics as we can now leverage on Templeton's extensive network and trusted leadership".
Ben Anh, CEO of ITL, says: “I am excited to have TSEMF IV join our ITL family of well-known and admired companies. Our long-term goal is to tap emerging opportunities in the region and transform ITL into a leader in e-commerce logistics".
Mark Mobius (pictured), Executive Chairman of Templeton Emerging Markets Group, says: “We have been impressed with ITL’s business and its strong management team. Its strong customer base and partnerships are a testament to management’s focus on quality and reliability”.
Richard Piliero, Head of Private Equity, Southeast Asia, for Templeton Asset Management Ltd, says: “We believe ITL’s diversified array of logistics services positions it well in a rapidly expanding market for trade and e-commerce. We are excited to be a partner helping to fund the company’s growth plans”.
The investment is structured as a convertible loan. TSEMFIV will appoint a nominee to ITL’s board of directors. PrimePartners Corporate Finance was the introductory agent.
