LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $9.9 million across three trade finance facilities to companies in Kenya, South Africa 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 September 22, 2014, TriLinc funded a $5,000,000 trade finance transaction at a fixed interest rate of 14.75% to a Kenyan cement distributor engaged in the production and distribution of cement. The transaction, set to mature on March 17, 2015, is supported by inventory, receivables, and other liquid assets. Founded in 2008, the borrower is a growing Kenyan cement distributor that utilizes cutting edge energy efficient and eco-friendly cement grinding technology to improve sustainability.
On September 2, 2014 (with the effective date of August 29, 2014) and on September 8, 2014, TriLinc funded $500,000 at 12.75%, and $900,000 at 13.00%, respectively, in a $1,400,000 trade finance transaction with a South African consumer goods distributor engaged in the manufacturing and distribution of consumer goods. The transaction, set to mature on November 27, 2014, is supported by a purchase and repurchase agreement that is secured by specific inventory. The borrower anticipates that financing will enable it to increase employment, wages and employee ownership.
On August 29, 2014, TriLinc funded $3,500,000 as part of a $5,000,000 revolving trade finance facility to an Argentinian dairy-farm cooperative. This six-month facility is secured by certain purchase contracts at a fixed interest rate of 10.33%. The borrower 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. 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 responsible and holistic approaches to management. The cooperative 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.
“TriLinc provides financing to growth-stage SMEs in developing economies that both meet our underwriting criteria and demonstrate intention to achieve, track and report on economic development, social and/or environmental impact,” said Gloria Nelund, TriLinc CEO. “This approach represents a clear example of how private capital can be deployed for positive change in underserved communities around the globe.”
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.
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.
