TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $8.0 million in trade finance transactions to companies in South Africa, Zambia 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 December 5, 2014, TriLinc funded $1,654,545 as part of an existing $10,000,000 trade finance facility at a fixed interest rate of 13.00% to a South African agricultural chemicals producer and distributor. The transaction, set to mature on February 15, 2015, is supported by specific inventory. The borrower anticipates that TriLinc financing will support employment generation.
On December 1 and December 23, 2014, TriLinc funded $1,000,000 and $330,398, respectively, as part of an existing $5,000,000 trade finance facility at a fixed interest rate of 12.50% to a Zambian agricultural distributor engaged in the warehousing and trading of key agricultural commodities including fertilizer, maize, soya beans, ground nuts and seed. The transaction, set to mature on March 1, 2015, is supported by a purchase and repurchase agreement that is secured by inventory. The borrower anticipates that TriLinc’s financing will support job creation and indirectly help local farmers improve agricultural productivity and food security.
On December 22, 2014, TriLinc funded $5,000,000 as part of three existing facilities for companies located in Argentina. TriLinc funded $2,000,000 to a dairy cooperative as a part of an existing $6,000,000 revolving trade finance facility at a fixed interest rate of 10.33%. Secured by purchase contracts and receivables, this transaction is set to mature on February 25, 2015. Additionally, TriLinc funded $2,000,000 to a meat production and processing company as part of an existing $7,000,000 revolving trade finance facility at a fixed interest rate of 11.98%. Secured by purchase contracts and receivables, this transaction is set to mature on June 4, 2015. TriLinc also funded $1,000,000 to an agricultural intermediary as part of an existing $7,000,000 revolving trade finance facility at a fixed interest rate of 9.00%. Set to mature on July 28, 2015, this transaction is secured by the assignment of purchase contracts and receivables. All three 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.
“TriLinc continues to deepen its financing relationships with an existing portfolio of impactful SME borrowers in developing economies,” said Gloria Nelund, TriLinc CEO. “By extending additional financing to these borrowers, we are supporting their growth, productivity and participation in the global marketplace, which in turn creates jobs and opportunities to increase the standard of living in the communities where they operate.”
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.
