LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc”) announced today that it has recently approved a total commitment of $10.0 million in revolving trade finance facilities, comprising a $5.0 million facility, respectively, to each of two Argentine companies: an agriculture distributor and a cooperative of dairy-farm cooperatives. 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 both 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 meets the Company’s requirements for underwriting, economic development and societal advancement, as described below:
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On March 28, 2014, TriLinc funded $3.1 million as part of a $5.0
million revolving facility at 9.41% interest to an Argentine
agriculture distributor, which will support the shipment of produce.
The borrower serves agricultural producers and international markets by facilitating grain exports. Founded in 1977, the company has expanded operations to encompass 93 branches and 45 storage, processing and shipping plants throughout Argentina, providing agricultural products to 48 countries. The borrower supports the economic development of its producers through improved efficiency and technical assistance. It has provided several producers with smart phones so they may arrange grain pick-up and shipments, verify account statements, request supplies and check market and weather conditions. The borrower likewise provides producers with training and technical assistance on topics such as sustainable water management, winter crops, greenhouse cultivation and crop rotation.
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On April 16, 2014, TriLinc funded $3.1 million as part of a $5.0
million revolving facility at 10.33% interest to an Argentine dairy
cooperative, which the borrower anticipates will allow it to expand
its member cooperatives’ production, quality and sales of milk and
other dairy products.
Over the last 75 years, the cooperative has played an important role in its members’ development. It offers support throughout the value chain, such as financial consulting, environmental training and technical assistance for its dairy farmers, marketing training for its distribution channels, and technical advice for its suppliers. In addition, the borrower has implemented globally-recognized socially responsible and sustainable practices, including Good Manufacturing Practices (GMP), Hazard Analysis Critical Control Point (HACCP) and ISO 26000, a guide on socially responsibility and holistic approaches to management. The borrower adheres to the UN Global Compact, a policy initiative for businesses committed to aligning their operations and strategies with 10 universally accepted principles in the area of human rights, labor, environment and anti-corruption.
“Financing developing economy SMEs through our portfolio of impact investments is vital to assisting companies to grow in ways that create economic, social and/or environmental opportunities,” noted TriLinc CEO Gloria Nelund. “This approach demonstrates how private capital can be deployed to help generate both business expansion and livelihood improvements for the companies’ employees, customers and communities.”
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 as well as 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.
Forward-Looking Statements
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.
