TriLinc Global Impact Fund (TriLinc), a non-traded limited liability company, has had a busy and productive July. The company, which makes investments in developing economies for small and medium sized enterprises (SMEs), recently announced that it has approved a total of $13.67 million in trade finance facilities to six companies in Africa and one in Argentina.
The recent commitments bring the company’s total financing commitments to $29.0 million for business expansion and socioeconomic development in Latin America, Africa, and Southeast Asia as of July 28, 2014.
“TriLinc continues to expand the volume and geographic reach of its financing activity to SMEs in developing economies,” said Gloria Nelund, TriLinc’s 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 progress.”
On July 7, 2014, TriLinc approved three separate trade finance transactions to three South African companies;
TriLinc funded $1,000,000 as part of a $2,500,000 trade finance transaction to a meat processor involved with feed, feedlot, and meat processing. With a fixed interest rate of 12.50%, the 120-day transaction is secured by livestock inventory and is supported by a purchase and repurchase agreement. The funding is expected to create jobs. The borrower provides its employees with education and with day care for their children. It also supports community food programs and is working toward reducing its dependence on chemical fertilizers and non-renewable energy sources.
TriLinc also funded $1,000,000 as part of a $2,520,000 trade finance transaction at a fixed interest rate of 12.50% to a rice and bean importer. The transaction, which is part of a purchase and repurchase agreement, is set to mature October 30, 2014 and is secured by rice inventory. The funding will allow for more employees to be hired and will further the community’s access to clean food. The borrower trains employees in skills such as computer literacy, junior management and supervisory development, and customer service, as well as life skills on topics like first aid and HIV/AIDS awareness. The borrower also implements South Africa’s Broad-Based Black Economic Empowerment program.
Also on July 7, 2014, TriLinc funded $750,000 as part of a $1,600,000 trade finance transaction to a South African dried fruit and nut distributor. With a fixed interest rate of 17.50%, the transaction is set to mature on October 2, 2014. It is documented as part of a purchase and repurchase agreement and is secured by dried fruit and nut inventory and receivables. Funding is anticipated to help grow the borrower’s employee base. The borrower adheres to South Africa’s environmental regulations and complies with Good Manufacturing Practices, in addition to implementing the country’s Broad-Based Black Economic Empowerment program. On July 24, 2014, TriLinc funded a further $500,000 to the fruit and nut distributor. The transaction has the same fixed interest rate of 17.50% and is part of the same purchase and repurchase agreement. It is set to mature on October 2, 2014.
On July 17, 2014, TriLinc funded $3,000,000 as part of a $4,000,000 trade finance transaction, documented as part of a purchase and repurchase agreement, to a Zambian fertilizer distributor. The transaction is set to mature on October 6, 2014 and is secured by specific receivables. The borrower produces and supplies purpose-made fertilizers that aid local farmers in maximizing crop yields to support the national breadbasket. The facility is the only company in Zambia that blends organic fertilizer. Recently, the company secured a national tender from a parastatal purchasing board, which is under the Zambian Procurement Authority.
On July 25, 2014, TriLinc funded two more transactions. The company funded a revolving trade finance facility of $420,000 at a fixed interest rate of 15.00% to a South African clothing importer and distributor. Scheduled to mature on November 3, 2014, the transaction is secured by certain clothing inventory that is imported to South Africa from Asia and sold to large retailers. TriLinc also funded $2,000,000 as part of a purchase and repurchase trade finance facility to a Namibian consumer goods importer and distributor. The transaction, set to mature on November 15, 2014, is secured by rice and sugar inventory and has a fixed interest rate of 12.50%. The borrower creates economic activity in a region known for high unemployment, and is in compliance with local environmental standards.
In Argentina 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 agricultural intermediary. The Argentinian company provides distribution, deployment, logistical, and marketing services to farmers, mostly in the grain and livestock sectors. The loan is secured by receivables and export contracts. The borrower has 93 branch locations and works with more than 13,000 individual agricultural producers nationwide. The company contributes some of its business activity to non-profit organizations and works to equip its producers with the latest logistical and technological equipment.
TriLinc Global Impact Fund has the goal of achieving financial returns through its investments in addition to creating positive, measurable impact in communities. It is distributed by SC Distributors, which RCS Capital Corp recently agreed to purchase through the acquisition of Validus Strategic Capital Partners.