LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $14.5 million in term loan and trade finance transactions with companies operating in Sub-Saharan Africa, Latin America, and Southeast Asia. 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 term loan and trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
On June 2, 2016, TriLinc funded $1,853,428 as part of an existing $4,000,000 revolving receivables trade finance facility to a global metals trader based in the United Kingdom. With an interest rate of 9.45%, the transaction is set to mature on November 2, 2016 and is secured by sales contracts. TriLinc’s financing will facilitate the import into South Africa of nickel cathodes, which are used extensively in infrastructure development.
On June 7, 2016, TriLinc funded $850,000 as part of an existing $2,500,000 revolving trade finance facility with a Chilean chia seed exporter. With a fixed interest rate of 10.90%, the transaction is set to mature on December 11, 2016 and is secured by inventory. The borrower anticipates that TriLinc’s financing will support the growth of its export business, improve agricultural productivity, and contribute to healthy customer lifestyles.
On June 24, 2016, TriLinc funded $750,000 as part of an existing $2,000,000 purchase and repurchase trade finance facility at a fixed interest rate of 12.00% to a consumer goods distributor operating in Namibia. The transaction, set to mature on October 21, 2016, is secured primarily by rice and sugar inventory. The borrower anticipates that TriLinc’s financing will continue to support job creation in a region noted for its high unemployment.
On June 29, 2016, TriLinc funded $3,000,000 as part of a new $3,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter. With a fixed interest rate of 9.25%, the transaction is set to mature on June 6, 2017 and is secured by inventory, accounts receivable, and purchase contracts. The borrower anticipates that TriLinc’s timely financing will enable the Borrower improve its competitiveness in the global marketplace while growing its employee base.
On June 29, 2016, TriLinc funded $3,000,000 as part of a new $3,000,000 four year senior secured term loan facility with an Indonesia Tin Producer for the financing of an eco-friendly electric furnace plant. With a fixed interest rate of 12.00%, the facility is set to mature on June 30, 2020 and is secured by primarily by plant property, machinery, and equipment. Throughout the course of TriLinc’s financing, it is anticipated that the borrower will increase the number of its employees and training opportunities as its business continues to grow and expand.
On June 30, 2016, TriLinc funded $5,000,000 to an Argentine meat production and processing company as part of an existing $9,000,000 revolving trade finance facility at an interest rate of 11.50%. Secured by purchase contracts and receivables, this transaction is set to mature on December 31, 2016. The borrower anticipates that TriLinc financing will support economic growth through job creation, increased exports, and increased agricultural productivity. For this borrower and all other TriLinc borrowers operating in Argentina, TriLinc provides export finance, where the international buyers are typically developed market companies or large conglomerates.
“TriLinc’s recent investments demonstrate our commitment to the investment and impact opportunity sets in Southeast Asia as well as to the growing agricultural and manufacturing value chains we have observed in Sub-Saharan Africa and Latin America,” said Gloria Nelund, TriLinc CEO. “We are particularly excited about the addition of a new term loan in Indonesia as it adds geographic and industry sector diversification to our portfolio while expanding the reach TriLinc capital has in contributing to economic development at both the local and global scale.”
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.
