TriLinc Global Impact Fund Makes Impact Investments in South Africa and Zambia
TriLinc Global Impact Fund announced today that it has approved a total of $3.62 million in trade finance facilities to a South African and a Zambian company, bringing total financing commitments as of August 28, 2014 to $29.4 million for business expansion and socioeconomic development through its holdings in Latin America, Africa and Southeast Asia
LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $3.62 million across two trade finance facilities to companies in South Africa and Zambia. The transaction details are summarized below.
“We believe that facilitating access to finance to SMEs in developing economies can be both a profitable investment proposition and an effective driver of sustainable economic development.”
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 on people and 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:
On August 12 and August 19, 2014, TriLinc facilitated two additional draws totaling $622,000 against an existing $1,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to a South African clothing importer and distributor. The transaction, set to mature on November 4, 2014 and December 5, 2014, respectively, is secured by specific clothing inventory being imported into South Africa from Asia and sold to large retailers serving all of the country’s market segments, including low income consumers.
On August 22 and August 26, 2014, TriLinc funded $2,000,000 and $1,000,000, respectively, as part of a $3,000,000 trade finance transaction at a fixed interest rate of 12.50% to a Zambian agricultural distributor engaged in the warehousing and trading of key agricultural commodities including fertilizer, maize, soya beans, ground nuts and seed. The transaction, set to mature on October 22, 2014, is supported by a purchase and repurchase agreement that is secured by specific receivables. The borrower has been awarded a large tender from a Zambian parastatal purchasing board to supply purpose-made fertilizers that can help local farmers maximize their crop yields to improve national food security.
“TriLinc provides vital financing to expansion-stage SMEs based on the conviction that the funding will support their ability to hire more employees, produce more goods for local consumption and export, provide training to locally-based employees and pay more taxes through increased revenues,” said Gloria Nelund, TriLinc CEO. “We believe that facilitating access to finance to SMEs in developing economies can be both a profitable investment proposition and an effective driver of sustainable economic development.”
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.