TriLinc Global Impact Fund Makes Impact Investments in Africa
TriLinc Global Impact Fund, a publicly registered non-traded limited liability company, recently approved $17.6 million in term loan transactions in Sub-Saharan Africa.
TriLinc Global Impact Fund, a publicly registered non-traded limited liability company, recently approved $17.6 million in term loan transactions in Sub-Saharan Africa. This brings total financing commitments to $408.8 million for business expansion and development through its holdings in Sub-Saharan Africa, Latin America, Southeast Asia, and Emerging Europe, as of November 30, 2019.
TriLinc Global Impact Fund 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.
On November 13, 2019, the company funded an incremental $2.6 million to an existing $4.3 million five-year term loan facility with an existing borrower, a grain processor in Uganda, to facilitate the preparation of the undeveloped portion of property into arable farm land.
Priced at 14.50 percent, the transaction is set to mature on April 30, 2024, and is secured by a mortgage over the 2,600 hectare financed property and assignment of sales proceeds. Trilinc said the investment is anticipated to support local jobs and increase the local food supply.
On November 22, 2019, the company funded $15 million as part of a new $130 million senior secured term loan facility to a Ghanaian independent power producer. With an interest rate of six-month LIBOR + 9.5 percent, the loan will mature on November 12, 2022 and is secured by existing power generation assets, expansion projects, the port facility, fuel supply agreements of the borrower, and a share pledge from the borrower, the company said. The borrower anticipates that the financing will help supply reliable and affordable energy to local families and businesses.
“[TriLinc Global Impact Fund’s] recent investment activities highlight our commitment to deepening relationships with existing borrower companies that are generating positive economic and social impact,” said chief executive officer Gloria Nelund. “Specifically, the grain processor directly helps gap Uganda’s food shortages while the power producer ultimately provides a stable source of electricity for local communities in Ghana.”
TriLinc Global Impact Fund’s invests in small and medium enterprises through experienced local market sub-advisors, and expects to create a portfolio of financial assets consisting primarily of collateralized private debt instruments. In addition, the company aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives.
