TriLinc Global Impact Fund Invests $28.6 Million in Emerging Markets
TriLinc Global Impact Fund, a non-traded, externally managed, limited liability company, approved $28.6 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.
“We continue to execute on a diverse set of investment opportunities that have the potential to generate meaningful economic and social impacts – such as women’s employment in South Africa and the distribution of a cleaner fuel alternative in Peru – alongside competitive financial returns,” said Gloria Nelund, TriLinc’s chief executive officer.
TriLinc funded the following term loan and trade finance transactions:
• $15 million to a Peruvian fuel distribution company as part of a new $15 million senior secured three-year term loan facility. With an interest rate of 11.5 percent and maturity date of August 1, 2019, the transaction is secured by the borrower’s fixed assets.
• $558,135 and $294,814, respectively, as part of a new $1 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, both transactions are secured by receivables and will mature between October 18 and November 13, 2016.
• $5 million to a Mauritian vanilla exporter as part of an existing $7.5 million senior secured trade finance facility. With an interest rate of one month Libor +10.5 percent, the transaction is set to mature on May 2, 2017 and is secured by inventory and receivables.
• Four transactions totaling $1.1 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 rate of 13 percent, all four transactions are set to mature between December 3 and December 27, 2016 and are secured by the stock that is delivered to the company’s warehouse.
• $2 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.
• $4.7 million as part of an existing senior secured $14 million 5-year term loan facility with a Brazilian information technology service provider. With a fixed rate of 13.5 percent, the transaction is set to mature on October 31, 2019 and is secured by service contracts and receivables.
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 August 31, 2016, the company has made $206.1 million in total financing commitments for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.
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