LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $9.5 million in term loan and trade finance transactions to companies in Argentina, Ecuador, and South Africa. 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 in 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:
Between January 4 and January 19, 2016, TriLinc funded $9,000,000 as part of three existing trade finance facilities for companies located in Argentina. Between January 4 and January 19, 2016, TriLinc funded three separate transactions totaling $7,000,000 to an agricultural intermediary as part of an existing $15,000,000 trade finance facility at an interest rate of 9.00%. Secured by purchase contracts and receivables, the first two transactions totaling $5,000,000 are set to mature on September 30, 2016 while the remaining $2,000,000 transaction is set to mature on September 4, 2016. On January 19, 2016, TriLinc funded $2,000,000 to an oilseed distribution company as part of an existing $5,100,000 revolving trade finance facility at an interest rate of 8.89%. Secured by purchase contracts and receivables, this transaction is set to mature on March 1, 2016. Both borrowers anticipate that TriLinc financing will support economic growth through job creation, increased exports, and increased agricultural productivity. For TriLinc’s Argentine borrowers, the Company provides export finance, where the international buyers are typically developed market companies or large conglomerates.
On January 15, 2016, TriLinc funded $243,747 to an Ecuadorian fish processing and exporting company as part of an existing $2,000,000 revolving senior secured trade finance facility at a fixed interest rate of 9.00%. With a maturity date of June 19, 2016, the transaction is secured by specific receivables and inventory destined for export. The borrower anticipates that TriLinc financing will support employment generation and increases in employee wages.
Between January 15 and 29, 2016, TriLinc funded three separate transactions totaling $280,181 as part of an existing $2,500,000 revolving senior secured trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. Set to mature between May 17 and May 28, 2016, the transactions are secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
“TriLinc’s recent investments in Latin America and Sub-Saharan Africa demonstrate the Company’s sustained commitment to catalyzing local economic development through international trade,” said Gloria Nelund, TriLinc CEO. “By extending trade finance facilities to growth-stage SMEs, TriLinc has become a reliable source of timely and flexible export and import financing that enhances the competitive positioning of its borrowers in the global marketplace while also having positive social and environmental impacts in the communities where they operate.”
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.
Forward-Looking Statements
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.
