LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it recently approved $36.8 million in term loan and trade finance transactions with companies operating in 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 November 2, 2016, TriLinc funded $500,000 as part of an existing $2,000,000 purchase and repurchase trade finance facility at a fixed rate of 12.00% to a Namibian consumer goods importer and distributor. The transaction, set to mature on October 29, 2017, is secured by rice, sugar, and other fast moving consumer goods inventory. The borrower anticipates that TriLinc’s financing will support job creation in a region noted for its high unemployment.
Between November 4, 2016 and November 30, 2016, TriLinc funded five separate transactions, totaling $4,292,000, as part of an existing $5,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter, whose local suppliers of farm-raised shrimp are all licensed by the National Fisheries Institute. With a fixed interest rate of 9.25%, the transactions are set to mature between June 6, 2017 and July 24, 2017. The transactions are secured by inventory, accounts receivable, and purchase contracts. TriLinc’s financing will support the borrower’s position as the seventh largest shrimp exporter in Ecuador, strengthening the company’s ability to offer competitive wages, health services, and childcare support to its employees.
Between November 4, 2016 and November 23, 2016, TriLinc funded $1,749,945 as part of an existing $8,500,000 senior secured trade finance facility to an energy efficient Moroccan-based scrap metal recycler and processor. With an interest rate of one month Libor +10.50%, the transactions are secured by inventory and receivables and are set to mature on July 17, 2017. It is anticipated that TriLinc’s financing will support the borrower’s strategy in growing its employee base, as the main employer in the town, while increasing its market access as one of the only local companies engaged in the full value chain of processing recycled scrap metal into finished goods for export.
Between November 10, 2016 and November 17, 2016, TriLinc funded $593,435 to an Earth Island Institute Dolphin-Safe certified 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, 2017, the transaction is secured by specific receivables and inventory destined for export. The borrower anticipates that TriLinc financing will continue to support employment generation and improvements in employee wages, in addition to the company’s commitment to waste management and water recycling initiatives on its premises.
Between November 15, 2016 and November 25, 2016, TriLinc funded $4,729,799 as part of an existing $11,000,000 senior secured trade finance facility to a South African electronics assembler. With an interest rate of 13.00%, all transactions are set to mature between November 2, 2017 and November 20, 2017 and are secured by stock that is delivered to the company’s warehouse. It is anticipated that TriLinc’s financing will increase the supply of affordable and accessible technology in the region, while supporting a growing work force.
On November 17, 2016, TriLinc funded $200,000, through two separate transactions, as part of an existing $16,050,000 senior secured five-year term loan commitment to a locally-owned Nigerian marine logistics provider. Set to mature on September 16, 2020, one $100,000 transaction will accrue interest at one month Libor +10.50%, and the second $100,000 transaction will accrue interest at one month Libor +10.50% plus 4.68% in deferred fixed interest. The borrower anticipates that TriLinc’s financing will support the maintenance of the company’s vessel while in dry dock, which will allow the vessel to operate more efficiently once active, and reduce the risk of lost operating time in the future.
On November 21, 2016, TriLinc funded $1,964,684 as part of an existing $8,000,000 senior secured revolving receivables trade finance facility to a global metals trader based in the United Kingdom and operating in Africa. With an interest rate of six month Libor + 7.50%, the transaction is set to mature on October 31, 2017 and is secured by a bill of exchange and sales contracts. TriLinc’s financing will facilitate the trade of South African nickel briquettes, which, after value-added processing into iron and steel products, are used extensively as durable inputs into infrastructure development projects worldwide.
On November 21, 2016, TriLinc funded $15,000,000 as part of a new three-year term loan facility with an infrastructure and logistics provider in Indonesia. Priced at 20.17% on average through the facility’s life, this transaction is set to mature on November 22, 2019 and is secured by a first ranking pledge over the company’s shares, subsidiary company ownership, and specific port assets. The borrower anticipates that TriLinc’s financing for the completion of a hauling road, in addition to reinforcing bridge infrastructure, will reduce the severe local congestion that currently exists on public roads. Additionally, the borrower will continue to offer extensive capacity-building programs to their employees to further enhance the sustainable operations of the company’s activities.
On November 22, 2016, TriLinc funded $2,000,000 as part of a new three-year $6,500,000 senior secured term loan facility with a fast moving consumer goods (FMCG) manufacturer and distributor in Zambia. Priced at 11.00%, the transaction is set to mature on November 16, 2019 and is secured by the underlying equipment. TriLinc’s financing will serve to finance the purchase of existing plant, machinery, and equipment and will be leased to own to the borrower. As one of the largest employers in the region, the company is projected to strengthen its labor force by expanding its production capacity of consumer goods such as laundry detergent, dish soap, and other household products. All of the products hold Zambia Bureau of Standard product certifications to ensure the traceability of goods and the company is Food and Drug Act compliant.
On November 25, 2016, TriLinc funded $5,641,242 to a Mauritian vanilla exporter as part of an existing $12,000,000 senior secured trade finance facility. Priced at one month Libor +10.50%, the transaction is set to mature on November 23, 2017 and is secured by inventory and receivables. It is anticipated that TriLinc’s financing will continue to provide the company’s smallholder farmer suppliers with access to new international markets and off-takers.
“TriLinc’s recent investments in Sub-Saharan Africa and Southeast Asia demonstrate the Company’s continuing ability to support a variety of industries and impact themes throughout the world,” said Gloria Nelund, TriLinc CEO. “From helping to finance projects ranging from the production of key consumer household products in Kenya to the enhancement of a critical infrastructure project in Indonesia, these latest transactions strengthen TriLinc’s economic development thesis of supporting local growth industries that also seek to generate measurable economic and social benefits.”
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.
