Press Release: TriLinc Global Impact Fund Makes Impact Investments in Africa and Latin America
Thursday, May 14, 2015
TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $3.97 million in trade finance transactions to companies in South Africa 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 April 6, 2015, TriLinc funded $600,000 as part of an existing $2,800,000 revolving 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 December 15, 2015, 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.
On April 10, 2015, TriLinc funded $3,100,000 as part of an existing $3,100,000 revolving trade finance facility at a fixed interest rate of 8.89% to an Argentine soy bean distributor. The transaction, set to mature on February 3, 2016, is supported by a specific purchase order contract with a buyer based in the Netherlands. The borrower anticipates that the financing will support economic growth through job creation, increased exports and increased agricultural productivity.
On April 16, 2015, TriLinc funded $100,000 as part of an existing $500,000 purchase and repurchase trade finance facility at a fixed interest rate of 19.50% to a South African waste management equipment distributor. The transaction, set to mature on May 14, 2015, is supported by specific equipment. The borrower anticipates that TriLinc financing will support its objective of providing environmental management solutions while also promoting the participation of women and minorities in the workplace.
On April 17, 2015, TriLinc funded $177,237 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. The transaction, set to mature on July 2, 2015, is secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
“TriLinc seeks to provide timely, efficient, and competitive capital to SMEs that lack access to such financing for their short-, medium- and long-term objectives.” said Gloria Nelund, TriLinc CEO. “With these recent investments, TriLinc has extended additional financing to existing borrower companies that demonstrate strong potential for growth as well as the ability to achieve measureable social and economic impact in their respective countries.”
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.