Press Release: TriLinc Global Impact Fund Makes Impact Investments in Africa and Latin America
Tuesday, April 14, 2015
TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $9.2 million in trade finance transactions to companies in South Africa, Kenya, and Argentina. The transaction details are summarized below.
TriLinc is an impact investing fund that provides growth-stage loans and trade finance to established small and medium enterprises (“SMEs”) in developing economies where access to affordable capital is significantly limited. Impact Investing is defined as investing with the specific objective of achieving a competitive financial return as well as creating positive, measurable impact on people and communities across the globe.
TriLinc approved the trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
On March 3, 2015, TriLinc funded $350,000 as part of an existing $2,800,000 trade finance facility at a fixed interest rate of 14.50% to a vertically-integrated South African meat processing company operating in the country’s rural provinces. The transaction, set to mature on January 28, 2016, is supported by inventory. TriLinc financing is expected to support the borrower’s continued growth through the expansion of its distribution network and the addition of more retail outlets in the country’s underserved low- to middle-income consumer market. As a part of this growth, the borrower anticipates that it will expand its employee base.
Between March 9 and March 31, 2015, TriLinc funded four separate transactions totaling $648,355 as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. All transactions are set to mature between June 18 and July 9, 2015 and are secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
On March 10 and March 17, 2015, TriLinc funded $2,000,000 and $5,000,000, respectively, as part of a $7,000,000 trade finance transaction at a fixed interest rate of 13.00% and 14.75%, respectively, to a Kenyan cement distributor engaged in the production and distribution of cement. The transactions are set to mature on June 1 and September 30, 2015, respectively, and are supported by inventory, receivables, and other liquid assets. Founded in 2008, the borrower is a growing Kenyan cement distributor that utilizes innovative energy efficient and eco-friendly cement grinding technology to improve sustainability.
On March 12, 2015, TriLinc funded $181,943 as part of an existing $750,000 trade finance facility at a fixed interest rate of 12.75% to a South African construction materials supplier engaged in importing and distributing plastic piping and fittings for commercial and residential infrastructure purposes. The transaction, set to mature on July 1, 2015, is supported by specific piping and fitting inventory. The borrower anticipates that TriLinc financing will enable it to increase employment opportunities.
On March 16, 2015, TriLinc funded $1,000,000 to an Argentine agricultural intermediary as part of an existing $7,000,000 revolving trade finance facility at a fixed interest rate of 9.00%. Set to mature on December 11, 2015, this transaction is secured by the assignment of purchase contracts and receivables. The borrower anticipates that TriLinc financing will support economic growth through job creation, increased exports and increased agricultural productivity.
“With these investments, TriLinc continues to strengthen its relationships with existing SME borrowers that seek greater access to the global marketplace,” said Gloria Nelund, TriLinc CEO. “By providing capital to companies that are expanding their operations while also pursuing economic, social and environmental progress for their stakeholders, TriLinc provides the potential for investors to pursue unique, yield-oriented strategies that change the world for the better.”
About TriLinc Global Impact Fund
TriLinc is a non-traded, externally managed, limited liability company that makes impact investments in SMEs in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. TriLinc invests in SMEs through experienced local market sub-advisors, and expects to create a diversified portfolio of financial assets consisting primarily of collateralized private debt instruments. TriLinc’s investment objectives are to generate current income, capital preservation and modest capital appreciation. In addition, the Company aggregates and analyzes social, economic and environmental impact data to track progress and measure success against stated objectives.