LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc”) announced today that it has recently approved $13.67 million across seven trade finance facilities to companies in South Africa, Zambia, Namibia and Argentina. 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 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 July 7, 2014, TriLinc funded $1,000,000 as part of a $2,500,000 trade finance transaction at a fixed interest rate of 12.50% to a South African meat processor engaged in feed, feedlot and meat processing. The 120-day transaction is supported by a purchase and repurchase agreement that is secured by livestock feed inventory. Funding is anticipated to create much-needed jobs by supporting the borrower’s continued growth efforts through the expansion of its distribution network and the addition of more retail outlets in the underserved low- to middle-income market. The borrower provides its employees and their children with access to education and day care services, and supports community food programs. In addition, the company is committed to reducing its dependence on chemical fertilizers and non-renewable energy sources.
On July 7, 2014, TriLinc funded $1,000,000 as part of a $2,520,000 trade finance transaction at a fixed interest rate of 12.50% to a South African rice and bean importer. The transaction, set to mature on October 30, 2014, is documented as part of a purchase and repurchase agreement and is secured by the underlying agricultural commodity, rice inventory. Funding is anticipated to support the continued expansion of the borrower’s employee base, in addition to providing rural communities with access to safe, clean food staples. The borrower provides formal employee training that includes computer literacy, junior management and supervisory development and customer service, as well as basic life skills on topics such as first aid and HIV/AIDS awareness. Furthermore, the borrower implements South Africa’s Broad-Based Black Economic Empowerment program.
On July 7, 2014, TriLinc funded $750,000 as part of a $1,600,000 trade finance transaction at a fixed interest rate of 17.50% to a South African dried fruit and nut distributor. The transaction, set to mature on October 2, 2014, is documented as part of a purchase and repurchase agreement and is secured by dried fruit and nut inventory as well as receivables. Funding is anticipated to support the continued growth in employee base of the borrower. The borrower is in compliance with all of South Africa’s environmental regulations and international standards, and it complies with Good Manufacturing Practices including ISO 17025 accredited microbiological testing. In addition, the borrower implements the country’s Broad-Based Black Economic Empowerment program.
On July 17, 2014, TriLinc funded $3,000,000 as part of a $4,000,000 trade finance transaction at a fixed interest rate of 12.00% to a Zambian fertilizer distributor. The transaction, set to mature on October 6, 2014, is documented as part of a purchase and repurchase agreement and is secured by specific receivables. The borrower is the only company in Zambia that blends organic fertilizer, to produce and supply purpose-made fertilizers to help local farmers maximize their crop yields in support of the national breadbasket. The company recently secured a large national tender from a parastatal purchasing board that is under the Zambian Procurement Authority.
On July 24, 2014, in addition to the $750,000 funded on July 7, 2014 to the South African dried fruit and nut distributor, TriLinc funded a further $500,000 as part of the existing trade finance transaction described above. The transaction, at a fixed interest rate of 17.50% and set to mature on October 2, 2014, is documented as part of the same purchase and repurchase agreement and is secured by dried fruit and nut inventory as well as receivables. TriLinc funding is anticipated to assist the borrower’s continued growth in employee base and support environmental and societal objectives as stated in the initial transaction.
On July 25, 2014, TriLinc funded $420,000 as part of a 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 3, 2014, is secured by specific clothing inventory being imported into South Africa from Asia and sold to large retailers.
On July 25, 2014, TriLinc funded $2,000,000 as part of a purchase and repurchase trade finance facility at a fixed interest rate of 12.50% to a Namibian consumer goods importer and distributor. The transaction, set to mature on November 15, 2014, is secured by rice and sugar inventory. The borrower generates economic activity in a region noted for its high unemployment, and is in compliance with all relevant local environmental standards, laws and regulations.
On July 28, 2014, TriLinc funded $5,000,000 as part of a one-year revolving trade finance facility at a fixed interest rate of 9.00% to an Argentinian agricultural intermediary that provides a variety of distribution, deployment, logistical and marketing services to farmers, predominantly in the grain and livestock sectors. The loan is secured by the assignment of receivables and export contracts that include large agricultural conglomerates. Established in 1977, the borrower has 93 branch locations and works with over 13,000 individual agricultural producers across the country. The company contributes a portion of its business activity to various non-profit organizations that serve to develop, promote and implement farming practices with a focus on environmental and social advancement. The company also works to equip its producers with the latest in logistical and technological equipment to promote efficiencies and further the overall production process.
“TriLinc continues to expand the volume and geographic reach of its financing activity to SMEs in developing economies,” said Gloria Nelund, TriLinc CEO. “Founded on the conviction that significant private capital is needed to help solve the world’s pressing challenges, TriLinc is committed to providing capital to SMEs that demonstrate impact intent and execution in support of economic growth and social and environmental progress.”
About TriLinc Global Impact Fund
TriLinc is a non-traded, externally managed, limited liability company that makes impact investments in small- and medium-sized enterprises (“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.