|[August 01, 2014]
TriLinc Global Impact Fund Makes Impact Investments in Africa and South America
LOS ANGELES --(Business Wire)--
TriLinc Global Impact Fund ("TriLinc") announced today that it has
recently approved $13.67 million across seven trade finance
facilities to companies in South Africa, Zambia, Namibia 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
TriLinc approved the trade finance transactions, which meet the
Company's requirements for underwriting, economic development and
societal advancement, as described below:
On July 7, 2014, TriLinc funded $1,000,000 as part of a $2,500,000 trade
finance transaction at a fixed interest rate of 12.50% to a South
African meat processor engaged in feed, feedlot and meat processing. The
120-day transaction is supported by a purchase and repurchase agreement
that is secured by livestock feed inventory. Funding is anticipated to
create much-needed jobs by supporting the borrower's continued growth
efforts through the expansion of its distribution network and the
addition of more retail outlets in the underserved low- to middle-income
market. The borrower provides its employees and their children with
access to education and day care services, and supports community food
programs. In addition, the company is committed to reducing its
dependence on chemical fertilizers and non-renewable energy sources.
On July 7, 2014, TriLinc funded $1,000,000 as part of a $2,520,000 trade
finance transaction at a fixed interest rate of 12.50% to a South
African rice and bean importer. The transaction, set to mature on
October 30, 2014, is documented as part of a purchase and repurchase
agreement and is secured by the underlying agricultural commodity, rice
inventory. Funding is anticipated to support the continued expansion of
the borrower's employee base, in addition to providing rural communities
with access to safe, clean food staples. The borrower provides formal
employee training that includes computer literacy, junior management and
supervisory development and customer service, as well as basic life
skills on topics such as first aid and HIV/AIDS awareness. Furthermore,
the borrower implements South Africa's Broad-Based Black Economic
On July 7, 2014, TriLinc funded $750,000 as part of a $1,600,000 trade
finance transaction at a fixed interest rate of 17.50% to a South
African dried fruit and nut distributor. The transaction, set to mature
on October 2, 2014, is documented as part of a purchase and repurchase
agreement and is secured by dried fruit and nut inventory as well as
receivables. Funding is anticipated to support the continued growth i
employee base of the borrower. The borrower is in compliance with all of
South Africa's environmental regulations and international standards,
and it complies with Good Manufacturing Practices including ISO 17025
accredited microbiological testing. In addition, the borrower implements
the country's Broad-Based Black Economic Empowerment program.
On July 17, 2014, TriLinc funded $3,000,000 as part of a $4,000,000
trade finance transaction at a fixed interest rate of 12.00% to a
Zambian fertilizer distributor. The transaction, set to mature on
October 6, 2014, is documented as part of a purchase and repurchase
agreement and is secured by specific receivables. The borrower is the
only company in Zambia that blends organic fertilizer, to produce and
supply purpose-made fertilizers to help local farmers maximize their
crop yields in support of the national breadbasket. The company recently
secured a large national tender from a parastatal purchasing board that
is under the Zambian Procurement Authority.
On July�24, 2014, in addition to the $750,000 funded on July 7, 2014 to
the South African dried fruit and nut distributor, TriLinc funded a
further $500,000 as part of the existing trade finance transaction
described above. The transaction, at a fixed interest rate of 17.50% and
set to mature on October�2, 2014, is documented as part of the same
purchase and repurchase agreement and is secured by dried fruit and nut
inventory as well as receivables. TriLinc funding is anticipated to
assist the borrower's continued growth in employee base and support
environmental and societal objectives as stated in the initial
On July�25, 2014, TriLinc funded $420,000 as part of a revolving trade
finance facility at a fixed interest rate of 15.00% to a South African
clothing importer and distributor. The transaction, set to mature on
November 3, 2014, is secured by specific clothing inventory being
imported into South Africa from Asia and sold to large retailers.
On July�25, 2014, TriLinc funded $2,000,000 as part of a purchase and
repurchase trade finance facility at a fixed interest rate of 12.50% to
a Namibian consumer goods importer and distributor. The transaction, set
to mature on November 15, 2014, is secured by rice and sugar inventory.
The borrower generates economic activity in a region noted for its high
unemployment, and is in compliance with all relevant local environmental
standards, laws and regulations.
On July�28, 2014, TriLinc funded $5,000,000 as part of a one-year
revolving trade finance facility at a fixed interest rate of 9.00% to an
Argentinian agricultural intermediary that provides a variety of
distribution, deployment, logistical and marketing services to farmers,
predominantly in the grain and livestock sectors. The loan is secured by
the assignment of receivables and export contracts that include large
agricultural conglomerates. Established in 1977, the borrower has 93
branch locations and works with over 13,000 individual agricultural
producers across the country. The company contributes a portion of its
business activity to various non-profit organizations that serve to
develop, promote and implement farming practices with a focus on
environmental and social advancement. The company also works to equip
its producers with the latest in logistical and technological equipment
to promote efficiencies and further the overall production process.
"TriLinc continues to expand the volume and geographic reach of its
financing activity to SMEs in developing economies," said Gloria Nelund,
TriLinc CEO. "Founded on the conviction that significant private capital
is needed to help solve the world's pressing challenges, TriLinc is
committed to providing capital to SMEs that demonstrate impact intent
and execution in support of economic growth and social and environmental
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.
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.
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