TriLinc Global Impact Fund (TriLinc) is a non-traded limited liability company that makes investments in developing economies for small and medium sized enterprises (SMEs). The company recently announced that it has approved two trade finance facilities in South Africa, worth $2.8 million.
The first transaction is part of a trade finance facility of up to $550,000. TriLinc funded $176,633 and $167,607, respectively at a fixed interest rate of 12.75% to a South African construction materials supplier.
The supplier imports and distributes plastic piping and fittings for commercial and residential infrastructures. The transaction is set to mature on April 9, 2015 and is supported by specific inventory. The borrower expects the financing to help increase job creation.
In the second trade finance transaction, TriLinc funded $2,500,000 at a rate of 17.5% to a mine remediation company in South Africa that is involved in remediating a recently shuttered zinc mine.
The borrowers are involved in the creation of a rehabilitation fund, the dismantling and disposal of mining equipment, the removal and sale of tailings, and monitoring ground water. Set to mature on October 1, 2015, the transaction is supported by inventory and receivables. The company’s activities help moderate environmental effects of the mine and recover commercial-use materials from the soil. The financing from TriLinc will help create employment opportunities.
“TriLinc’s financing to expansion-stage, progressive SMEs in developing economies reflects our belief that providing capital to promising yet under-funded companies contributes to the global sustainable economy,” commented Gloria Nelund, CEO of TriLinc. “We help SMEs that are committed to job creation and social and environmental impact to grow, and in doing so they foster vibrant communities around the world.”
As of September 30, 2014, TriLinc’s total loan commitments were $43,752,000 and consisted of 17 investments throughout Africa and South America.