TriLinc makes impact investments in LATAM and Sub-Saharan Africa
AA – TriLinc Global Impact Fund announced today that it has approved an additional $11.6 million in term loan and trade finance facilities to companies operating in Latin America and Sub-Saharan Africa, bringing total financing commitments as of September 30, 2016 to $210.6 million for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.
TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it recently approved $11.6 million in term loan and trade finance transactions with companies operating in Latin America and 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 term loan and trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
On September 6, 2016, TriLinc funded $4,000,000 to an integrated steel producer in Zambia as part of an existing senior secured $6,000,000 trade finance facility. With an interest rate of 13.00% and maturity date of August 7, 2017, the transaction is secured by specific inventory, receivables, and property. The company anticipates that TriLinc’s financing will continue to support its growth objectives, which include an expanding labor force and ongoing programs that contribute to greater equality and empowerment in the Zambian labor force.
On September 9, 2016, TriLinc funded $500,000 as part of an existing senior secured $3,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter. With a fixed interest rate of 9.25%, the transaction is set to mature on June 6, 2017 and is secured by inventory, accounts receivable, and purchase contracts. The borrower anticipates that TriLinc’s timely financing will enable the Borrower to improve its competitiveness in the global marketplace while growing its employee base.
On September 12, 2016, TriLinc funded $500,000 as part of an existing $2,500,000 revolving trade finance facility with a Chilean chia seed exporter. With a fixed interest rate of 10.90%, the transaction is set to mature on December 11, 2016 and is secured by inventory. The borrower anticipates that TriLinc’s financing will support the growth of its export business, improve agricultural productivity, and contribute to healthy customer lifestyles.
On September 21 2016, TriLinc funded $372,800 as part of an existing $1,500,000 senior secured trade finance facility with a United Kingdom-based equipment and machinery trading company operating in Africa. With an interest rate of 12.00%, the transaction is secured by receivables and will mature on December 5, 2016. TriLinc financing will enable the trade of equipment and machinery products as well as maintenance services to an industrial client operating in Ghana. It is anticipated that the borrower’s activities in Ghana will improve productivity and competitiveness, through an innovative process that increases ease of access to machinery and equipment in a timely and cost effective manner.
On September 26, 2016, TriLinc funded $3,262,347 to a Mauritian vanilla exporter as part of an existing $12,000,000 senior secured trade finance facility. With an interest rate of one month Libor +10.50%, the transaction is set to mature on June 25, 2017 and is secured by inventory and receivables. It is anticipated that TriLinc’s financing will continue to provide the company’s smallholder farmer suppliers with access to new international markets and off-takers, including large U.S.–based conglomerate.
Between September 27 and September 28, 2016, TriLinc funded five transactions totaling $1,910,082 as part of an existing $11,000,000 senior secured trade finance facility with a South African electronics company that assembles affordable cellular phones and digital television converter sets. With fixed interest rates ranging between 12.00% and 13.00%, all five transactions are set to mature between January 5 and January 26, 2017 and are secured by the stock that is delivered to the company’s warehouse. The company anticipates that TriLinc’s financing will support its continued growth efforts and create more jobs, particularly among the country’s female population, while increasing the supply of affordable and accessible technology in the region.
On September 29, 2016, TriLinc funded $1,071,811 as part of an existing $4,000,000 senior secured revolving receivables trade finance facility to a global metals trader based in the United Kingdom operating in Africa. With an interest rate of six month Libor + 8.00%, the transaction is set to mature on February 25, 2017 and is secured by a bill of exchange and sales contracts. TriLinc’s financing will facilitate the trade nickel cathodes into South Africa, a critical input to iron and steel production, for further value-added processing.
“TriLinc’s recent investment activity demonstrates how our firm’s financing contributes to strengthening the economic foundation of developing economies across a wide array of vital industries, including the agricultural sector in Latin America and manufacturing and infrastructure input sectors in Sub-Saharan Africa,” said Gloria Nelund, TriLinc CEO. “Furthermore, the investments reflect TriLinc’s support of enterprises, such as the Chilean Chia Seed Exporter, that seek to enhance the expansion and competitiveness of core sectors through high-demand products with access to international markets.”
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