TriLinc Global Impact Fund (TriLinc), a non-traded limited liability company, announced yesterday that it will make an impact investment in an Argentine beef producing and processing company. The commitment takes the form of a $5 million revolving trade finance facility.
As an impact investing fund, TriLinc makes investments in developing economies for small and medium sized enterprises, known as SMEs. Impact investing has the goal of achieving financial returns in addition to creating positive, measurable impact in communities.
TriLinc funded $4 million of the $5 million revolving facility at 11.98% interest on June 3, 2014. The borrower offers ranchers technical assistance in cattle health and nutrition as well as organic beef production and land management. The beef company, which was founded by Argentine ranchers in the 1950s, produces and processes meats for domestic consumption and export.
“By offering financing opportunities to SMEs in underserved markets, TriLinc is contributing to company expansion and job creation – and in the case of trade finance, to more secure transactions and a stronger global economy as well,” said TriLinc CEO Gloria Nelund. “TriLinc’s disciplined approach to tracking, analyzing and reporting the economic, social and environmental impact of its borrower companies promotes our vision that financial success and societal benefits must be linked and mutually reinforcing,” she added.
The beef company follows international quality and safety meat processing standards and also utilizes energy savings, waste reduction, and water conservation practices in its operations. The company expects that the financing will create new jobs and support the country’s economic development by increasing exports, mainly to European buyers.
TriLinc’s distributor is SC Distributors which RCS Capital Corp recently agreed to purchase through the acquisition of Validus Strategic Capital Partners.
As of May 28, 2014, TriLinc’s total financing commitments for business expansion and socioeconomic development in Latin America and Southeast Asia was $28.7 million.