LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $17.0 million in term loan and trade finance transactions to companies in South Africa, Kenya, Argentina, and Brazil. 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 November 3 and November 16, 2015, TriLinc funded two separate transactions totaling $1,519,560 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 digital television conversion sets. With a fixed interest rate of 13.00%, the transactions are set to mature on February 25 and March 15, 2016, respectively, and are 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.
Between November 6 and November 20, 2015, TriLinc funded three separate transactions totaling $375,182 as part of a new $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 a variable interest rate of three month Libor +11.00%, the transactions are set to mature between February 4 and February 18, 2016 and are secured by receivables as well as inventory. The borrower anticipates that TriLinc financing will enhance food security in Kenya and support employment generation.
On November 16 and November 30, 2015, TriLinc funded two separate transactions totaling $5,000,000 as part of an existing $11,000,000 revolving trade finance facility at a fixed interest rate of 9.00% to an Argentine agricultural intermediary. Both transactions are set to mature on January 10, 2016 and are secured by the assignment of purchase contracts and receivables. Additionally, on November 16, 2015, TriLinc funded $2,000,000 as part of an existing $8,000,000 revolving trade finance facility at an interest rate of 11.98% to an Argentine meat production and processing company. Secured by purchase contracts and receivables, the transaction is set to mature on April 30, 2016. Both borrowers anticipate that TriLinc financing will support economic growth through job creation, increased exports and/or increased agricultural productivity. For TriLinc’s Argentine borrowers, the Company provides export finance, where the international buyers are typically developed market companies or large conglomerates.
On November 17, 2015, TriLinc funded $5,500,000 as part of a new $14,000,000 senior secured five-year term loan commitment to a Brazilian information technology service provider. With a maturity date of October 31, 2019 and interest rate of 13.50%, the transaction is secured by service contracts and receivables. The borrower anticipates that TriLinc financing will enable the company to pursue its long-term growth objectives and support job creation.
On November 17, 2015, TriLinc also funded $137,572 as part of an existing $2,500,000 revolving senior secured trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. Set to mature on February 11, 2016, the transaction is secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
On November 19, 2015, TriLinc funded three separate transactions totaling $2,500,000 as part of an existing $2,500,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50% to a South African mine remediation company. Engaged in the removal and sale of metal tailings from a recently shuttered zinc mine, the borrower’s activities also aim to mitigate the environmental effects of the former mine by remediating the land site, creating a rehabilitation fund, dismantling and disposing mining equipment, and monitoring ground water. The borrower anticipates that TriLinc’s financing will enable the borrower to generate new mine servicing and remediation jobs. Once the tailings extraction is complete and the site is deemed to be completely rehabilitated by South African regulatory authorities, the borrower intends to donate the property to the community for affordable housing developments.
“TriLinc’s recent investment in Sub-Saharan Africa and Latin America demonstrate the Company’s ability to proactively initiate partnerships with new borrowers and deepen relationships within our existing portfolio,” said Gloria Nelund, TriLinc CEO. “Additionally, these latest transactions represent how TriLinc is investing across a variety of impact themes that support the fund’s economic development thesis while seeking to enhance agricultural productivity, food security, access to technology, and environmental sustainability.”
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.
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.
