LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $16.75 million in trade finance transactions in companies operating in Sub-Saharan Africa. 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:
On March 1, 2016, TriLinc funded $316,370 to an agricultural supplies distributor in South Africa as part of an existing $10,000,000 senior secured trade finance facility at an interest rate of 10.38%. Set to mature on May 30, 2016, the transaction is secured by specific product inventory. The borrower anticipates that TriLinc’s financing will support employment generation.
On March 1, 2016, TriLinc also funded $10,000,000 as part of a new $10,000,000 senior secured trade finance facility to a Singaporean agricultural products exporter operating in Sub-Saharan Africa. With an interest rate of 11.50% and a maturity date of April 1, 2016, the transaction is secured by specific product inventory warehoused by the borrower in Kenya, Tanzania, and Mozambique.
On March 18, 2016, TriLinc funded $6,000,000 as part of a new $7,000,000 senior secured equipment purchase facility with a Ghanaian power producer. With an interest rate of 11.50% and a maturity date of March 10, 2017, this transaction is secured by a letter of credit and the underlying equipment being financed by the company. The borrower anticipates that TriLinc’s financing will support increased access to energy for end-users in Ghana and will contribute to reducing the demand pressures and blackout frequency that currently burdens the country’s electric grid.
On March 29, 2016, TriLinc funded $438,075 as part of an existing $11,000,000 revolving senior secured trade finance facility with a South African electronics company that assembles affordable cellular phones and televisions. With a fixed interest rate of 13.00%, the transaction is set to mature on July 27, 2016 and is secured by receivables as well as specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support job creation and increase the volume of affordable devices in the region.
“TriLinc’s recent investments in Sub-Saharan Africa underscore our commitment in supporting improvements to infrastructure development, access to technology, and agricultural productivity throughout the region,” said Gloria Nelund, TriLinc CEO. “From increasing access to power generation equipment to improving the availability of affordable technology for low and middle-income customer segments, TriLinc’s timely and flexible financing is playing an important role in the successful development and competitiveness of the region’s burgeoning SME segment.”
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.