LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc”), announced today that it has approved $576,000 in financing to a Peruvian company involved in the purchase, processing, packaging, export and sale of fruits and vegetables. Also, during the first quarter of 2014 TriLinc provided $5.165 million in additional loans to existing borrowers, including an Indonesian electronics retailer, a Brazilian sugar producer, a Chilean sustainable timber exporter and a Peruvian diaper manufacturer, for a total of $5.741 million in loans funded for the current year.
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 both a competitive financial return as well as creating positive, measurable impact on people and communities across the globe.
TriLinc approved the following transactions, which meet the Company’s requirements for underwriting, business development and socioeconomic advancement:
- On March 25, 2014, TriLinc funded $576,000 as part of a two-year term loan at 13.00% interest to a Peruvian food processing company. The borrower anticipates that the financing will allow it to expand its salad and fresh cuts business, thereby supporting the growth of small-scale farmers from the highlands of Lima. Additionally, the borrower supports its supply chain members by providing technical assistance to small producers, such as advice for optimizing productivity and training on efficiency and quality control.
- On March 20, 2014, TriLinc funded a further $1.0 million as part of an existing one-year term loan facility with an all-in yield at 14.50% to an Indonesian electronics retailer. TriLinc had previously provided the company with $1.0 million at an all-in yield of 14.50% as part of this same facility. The company caters to consumers in the lower-middle to lower income brackets who lack access to traditional forms of credit. Financing from our borrower allows consumers to purchase household appliances and electronics, such as refrigerators and washing machines, on payment plans.
- On March 13, 2014, TriLinc provided a further $500,000 as part of an existing term loan at 12.43% interest to a Brazilian sugar producer. In a region of Brazil that has a poverty rate double the national average, the financing allows the borrower to continue improving its milling operations and supporting its employees with training and health care services.
- Over the course of this quarter, TriLinc facilitated a $415,000 draw against an existing trade finance facility at 9.85% interest to a Chilean sustainable timber exporter. The borrower is a Forest Stewardship Council-certified timber company engaged in the acquisition and processing of timber into wood chips and wood blocks for manufacturers in Japan. The borrower estimates that it has directly or indirectly created 500 jobs in the region.
- On March 13, 2014, TriLinc funded a further $1.5 million as part of an existing three-year term loan at 13.10% interest to a diaper manufacturer in Peru. TriLinc had previously provided the company with a separate $750,000 one-year term loan at 13.10% interest to finance inventory purchases. The borrower is growing rapidly and expects the financing from TriLinc to allow it to both increase the number of employees and expand its product line to include adult diapers. Currently, the borrower produces the only affordable disposable diaper for lower-middle income Peruvian households.
“We are thrilled to support the financing needs of companies of this caliber through our portfolio of impact investments,” stated TriLinc CEO Gloria Nelund. “The transactions present a clear example of how private capital can be deployed to make a difference in the lives of so many individuals and communities.”
About TriLinc Global Impact Fund
TriLinc is a non-traded, externally managed, limited liability company that makes impact investments in small- and medium-sized enterprises (“SMEs”) in developing economies that provide the opportunity to achieve both competitive financial returns as well as 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.
This press release contains forward-looking statements within the meaning of the federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The Company undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in the Company's expectations.