LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $15.5 million in trade finance transactions to companies in South Africa, Zambia, 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 February 4 and February 10, 2015, TriLinc funded $375,447 and $880,923, respectively, as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. Both transactions, set to mature on May 28, 2015, are secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
On February 6, 2015, TriLinc funded a further $250,000 as part of an existing $3,250,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50% to a South African mine remediation company. Engaged in the remediation of a recently shuttered zinc mine, the borrower’s activities include the creation of a rehabilitation fund, dismantling and disposal of mining equipment, removal and sale of tailings, and monitoring of ground water. In addition to recovering commercial-use materials from the soil, the remediation activities mitigate the environmental effects of the former mine. The borrower anticipates that the financing will enable it to generate employment opportunities. The transaction, set to mature on February 2, 2016, is supported by inventory and receivables.
On February 6 and February 25, 2015, TriLinc funded $2,000,000 and $3,500,000, respectively, as part of an existing $6,000,000 revolving trade finance facility at a fixed interest rate of 10.90% to an Argentine dairy cooperative. The transactions are set to mature on November 3, 2015 and February 25, 2016, respectively, and are supported by purchase contracts with large international conglomerates. The borrower anticipates that TriLinc financing will support economic growth through job creation, increased exports and increased agricultural productivity.
On February 13, 2015, TriLinc funded $210,752 as part of a new $500,000 purchase and repurchase trade finance facility at a fixed interest rate of 19.5% to a South African waste management equipment distributor. The transaction, set to mature on April 17, 2015, is supported by specific equipment. The borrower anticipates that TriLinc financing will support its objective of providing environmental management solutions while also promoting the participation of women and minorities in the workplace.
On February 20, 2015, TriLinc funded $1,000,000 as part of an existing $2,800,000 purchase and repurchase trade finance transaction at a fixed interest rate of 14.50% to a vertically-integrated South African meat processing company operating in the country’s rural provinces. The transaction, set to mature on December 22, 2015, is supported by inventory. TriLinc financing is expected to support the borrower’s continued growth through the expansion of its distribution network and the addition of more retail outlets in the country’s underserved low- to middle-income consumer market. As a part of this growth, the borrower anticipates that it will expand its employee base.
On February 24, 2015, TriLinc funded $7,280,000 as part of an existing $15,000,000 trade finance facility at a blended interest rate of 12.08% 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 25, 2015, is secured by specific inventory. The borrower anticipates that TriLinc financing will support job creation and indirectly help local farmers improve agricultural productivity and food security.
“TriLinc seeks to improve developing economy SME access to international markets,” said Gloria Nelund, TriLinc CEO. “SMEs are the backbone of the global economy, yet they lack access to timely, efficient, and competitive growth capital. With these recent investments, TriLinc is supporting enterprises that are critical to the economic development of their respective countries.”
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.