LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $2.7 million in trade finance transactions to companies in Kenya, South Africa, and Zambia. 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 trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
Between February 1 and February 23, 2016, TriLinc funded four separate transactions totaling $1,711,419 to an agricultural supplies distributor in South Africa as part of an existing $10,000,000 trade finance facility at an interest rate of 10.38%. Set to mature between April 24, 2016 and May 22, 2016, the transactions are secured by specific product inventory. The borrower anticipates that TriLinc’s financing will support employment generation.
On February 16, 2016, TriLinc funded $24,470 as part of an existing $1,000,000 revolving senior secured trade finance facility with a Kenyan rice distributor that imports and supplies rice and other foodstuffs throughout Kenya. With an interest rate of three month Libor + 11.00% and maturity date of May 15, 2016, this transaction is secured by receivables as well as inventory. The borrower anticipates that TriLinc’s financing will enhance food security in Kenya and support employment generation.
On February 19, 2016, TriLinc funded $980,000 as part of an existing $10,000,000 trade finance facility at an interest rate of 12.50% to a Zambian farm supplies distributor engaged in the warehousing and trading of key agricultural products including fertilizer, maize, soya beans, ground nuts, and seed. The transaction, set to mature on May 3, 2016, is secured by specific receivables. The borrower anticipates that TriLinc’s financing will support job creation and indirectly help local farmers improve agricultural productivity and food security.
“TriLinc’s recent trade finance transactions represent our commitment to supporting agricultural productivity and food security in Sub-Saharan Africa,” said Gloria Nelund, TriLinc CEO. “From financing the import of agricultural inputs to the distribution of foodstuff products, these transactions demonstrate TriLinc’s ability to respond to the capital needs of SMEs operating across the agricultural supply chain with a timely and short-term financing product.”
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.