TriLinc Global Impact Fund Invests $5.4 Million in Emerging Markets

TriLinc Global Impact Fund, a non-traded, externally managed, limited liability company, has approved $5.4 million in term loan and trade finance transactions with companies operating in Latin America and Sub-Saharan Africa. 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 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 investments in Latin America and Sub-Saharan Africa exhibit the company’s commitment to strengthening relationships with existing portfolio companies that demonstrate strong growth potential,” said Gloria Nelund, TriLinc CEO. “By supporting locally owned small and medium-sized businesses that are leading industry players in their respective countries, and are also committed to sustainability principles, TriLinc highlights the opportunity investors have to seek a positive economic return and support more dynamic communities across the globe.”

TriLinc approved and funded the following term loan and trade finance transactions:

Trilinc funded $250,000 as part of an existing $16.1 million senior secured five-year term loan commitment to a Nigerian marine logistics provider. Set to mature on September 16, 2020, the transaction will accrue interest at 10.50 percent.

In two separate transactions, Trilinc funded $1 million as part of an existing $8.5 million senior secured trade finance facility to an energy efficient Moroccan-based scrap metal recycler and processor that sources its product from local micro, small, and medium size suppliers. With an interest rate of one month Libor +10.50 percent, the transactions are secured by inventory and receivables and are set to mature on July 17, 2017.

In six separate transactions totaling $3.4 million, as part of an existing $5.5 million revolving trade finance facility with an Ecuadorian shrimp exporter, whose local suppliers of farm-raised shrimp are all licensed by the National Fisheries Institute. With a fixed interest rate of 9.25 percent, all transactions are set to mature on June 6, 2017 and are secured by inventory, accounts receivable, and purchase contracts.

TriLinc funded $70,814 to an Earth Island Institute Dolphin-Safe-certified Ecuadorian fish processing and exporting company as part of an existing $2 million revolving senior secured trade finance facility at a fixed interest rate of 9.00 percent. With a maturity date of June 19, 2017, the transaction is secured by specific receivables and inventory destined for export.

The company funded $723,840 as part of an existing $8 million senior secured revolving receivables trade finance facility to a global metals trader based in the United Kingdom and operating in Africa. With an interest rate of six month Libor + 6.00 percent, the transaction is set to mature on June 30, 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 December 31, 2016, the company has made $244.1 million in financing commitments for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.

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