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TriLinc Global Impact Fund Invests $11.6 Million in Emerging Markets

TriLinc Global Impact Fund, a non-traded, externally managed, limited liability company, approved $11.6 million in term loan and trade finance transactions with companies operating in Latin America and Sub-Saharan Africa.

TriLinc is an impact investing fund that provides growth-stage loans and trade finance to established small and medium enterprises 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’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’s chief executive officer. “Furthermore, the investments reflect TriLinc’s support of enterprises that seek to enhance the expansion and competitiveness of core sectors through high-demand products with access to international markets.”

TriLinc approved the following term loan and trade finance transactions:

• $4 million to an integrated steel producer in Zambia as part of an existing senior secured $6 million trade finance facility. With an interest rate of 13 percent and maturity date of August 7, 2017, the transaction is secured by specific inventory, receivables, and property.

• $500,000 as part of an existing senior secured $3 million revolving trade finance facility with an Ecuadorian shrimp exporter. With a fixed interest rate of 9.25 percent, the transaction is set to mature on June 6, 2017 and is secured by inventory, accounts receivable, and purchase contracts.

• $500,000 as part of an existing $2.5 million revolving trade finance facility with a Chilean chia seed exporter. With a fixed interest rate of 10.9 percent, the transaction is set to mature on December 11, 2016 and is secured by inventory.

• $372,800 as part of an existing $1.5 million senior secured trade finance facility with a United Kingdom-based equipment and machinery trading company operating in Africa. With an interest rate of 12 percent, 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.

• Approximately $3.3 million to a Mauritian vanilla exporter as part of an existing $12 million senior secured trade finance facility. With an interest rate of one month Libor +10.50 percent, the transaction is set to mature on June 25, 2017 and is secured by inventory and receivables.

• TriLinc funded five transactions totaling $1.9 million as part of an existing $11 million senior secured trade finance facility with a South African electronics company that assembles affordable cellular phones and digital television converter sets. With a fixed interest rates ranging between 12 percent and 13 percent, 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.

• $1.1 million as part of an existing $4 million 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 percent, the transaction is set to mature on February 25, 2017 and is secured by a bill of exchange and sales contracts.

TriLinc invests in small and medium size enterprises through local market sub-advisors and expects to create a diversified portfolio of financial assets consisting primarily of collateralized private debt instruments. The company also aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives. As of September 30, 2016, the company has made $210.6 million in financing commitments for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.

 

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