LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it recently approved $19.9 million in term loan and trade finance transactions with companies operating in Africa and Latin America. 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 recently approved $19.9 million in term loan and trade finance transactions which meet the Company’s requirements for underwriting, economic development, and societal advancement, as described below:
Between February 2, 2017 and February 24, 2017, the Company funded five separate transactions, totaling $1,739,000, as part of an existing $5,000,000 revolving trade finance facility with a Dolphin-Safe certified Ecuadorian tuna processor and exporter. Priced at 9.50%, all transactions are set to mature on May 9, 2017 and are secured by inventory and accounts receivable. TriLinc’s financing will support the borrower’s job creation efforts, as the borrower anticipates that it will increase its processing capacity by 30% in the next three years, requiring another work shift and a substantial increase in its workforce. The borrower is dedicated to the wellbeing of its employees, as shown by its offering of extensive training programs upon hiring, and performing human resource studies to measure the happiness and efficiency of its employees.
On February 3, 2017, the Company funded two separate transactions, totaling $940,000, as part of an existing senior secured purchase order revolving credit facility to a Peruvian diaper manufacturer. Priced at 12.00%, both transactions are set to mature on July 28, 2021. The borrower anticipates that TriLinc’s financing will support the borrower’s efforts in expanding its distribution network to continue offering high quality products to low-income families throughout Peru.
On February 3, 2017, the Company funded an additional $2,500,000 as part of an existing $15,000,000 trade finance facility with an Argentine agriculture products distributor that works extensively throughout the local agribusiness supply chain. Secured by purchase contracts and receivables, the transaction is set to mature on July 18, 2017 and has a fixed interest rate of 9.00%. The borrower anticipates that TriLinc’s financing will support economic growth through job creation and increased exports. With a mission to enhance its producers’ agricultural productivity, the borrower offers training programs on topics such as sustainable water usage and post-harvest storage management.
Between February 3, 2017 and February 24, 2017, the Company funded nine separate transactions, totaling $6,062,875 as part of an existing $9,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter, whose local suppliers of farm-raised shrimp are all licensed by INP, an Ecuadorian institute specializing in biological, technological, and economic research aimed at the management and development of sustainable fisheries. With a fixed interest rate of 9.25%, the transactions are set to mature on June 6, 2017. The financings are secured by inventory, accounts receivable, and purchase contracts. The borrower uses state-of-the-art, cost-efficient cooling and freezing equipment to preserve the quality of its product and reduce its environmental footprint. TriLinc’s financing will support the borrower’s position as Ecuador’s seventh-largest shrimp exporter, and strengthen the borrower’s ability to offer competitive wages, health services, and childcare support to its employees.
On February 8, 2017, the Company funded $3,390,322 as part of an existing $5,000,000 pre-export trade finance facility to an Italian-based international development logistics provider contracted by the United Nations to consolidate and ship prefabricated housing units and materials for UN mission personnel throughout Africa. With an interest rate of 9.5% and maturity date of December 31, 2017, this transaction is secured by cash, inventory, and receivables. It is anticipated that TriLinc’s financing will allow the borrower to access new markets and continue supporting the UN’s operations across Sub-Saharan Africa.
Between February 8, 2017 and February 28, 2017, the Company funded four separate transactions, totaling $2,393,672 as part of a new $2,500,000 revolving trade finance facility with a family-owned Uruguayan citrus producer that specializes in growing, processing, packing, and exporting citrus fruits, juice concentrate, and essential oils. The borrower is certified under the guidelines of Tesco Nurture and Unilever’s sustainable agriculture code, demonstrating its commitment to operating in an environmentally responsible manner. With a fixed rate of 9.00%, the transactions are set to mature on February 3, 2018 and are secured by inventory. TriLinc’s financing is anticipated to support the borrower’s efforts in increasing agricultural production to meet the demand stemming from new international markets, thereby facilitating export diversification in Uruguay.
On February 21, 2017, the Company funded $1,234,145 as part of an existing $2,500,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50% to a South African mine remediation company. The transaction is set to mature on September 28, 2017 and is secured by the tailings site. Engaged in the removal and sale of metal tailings from a recently shuttered zinc mine, the borrower also aims to mitigate the environmental effects of the former mine site by remediating the land, creating a rehabilitation fund, dismantling and disposing of mining equipment, and monitoring ground water quality. The borrower anticipates that TriLinc’s financing will enable it to generate new mine servicing and remediation jobs. Once the tailings extraction is complete and the site is deemed to be completely rehabilitated by South African regulatory authorities, the borrower intends to donate the property to the community for affordable housing development.
On February 28, 2017, the Company funded $1,664,419 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 + 6.00%, the transaction is set to mature on July 25, 2017, and is secured by a bill of exchange and sales contracts. TriLinc’s financing will facilitate the trade of London Metal Exchange registered, full plate nickel cathodes which are used extensively as inputs in infrastructure development projects worldwide.
“TriLinc’s recent investments demonstrate our support of enterprises, such as the Uruguayan citrus producer, that seek to improve their position as competitive players in the international marketplace,” said Gloria Nelund, CEO of TriLinc. “Furthermore, the investments reflect TriLinc’s commitment to current and new borrowers that aim to generate economic and social impact across agricultural, manufacturing, and service industries worldwide.”
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.
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.