TriLinc Global Impact Fund Invests $24.6 Million in Emerging Markets
TriLinc Global Impact Fund, a non-traded, externally managed, limited liability company, approved $24.6 million in term loan and trade finance facilities to 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.
“From supporting the production of critical infrastructure inputs in Morocco to the processing and export of fresh Ecuadorian seafood, TriLinc’s recent investment activity represents how we finance key agricultural and manufacturing industries that drive long-term economic development in Africa and Latin America,” said Gloria Nelund, TriLinc CEO. “Moreover, these investments demonstrate how TriLinc seeks to deepen its relationship with borrowers that need access to timely and efficient capital and continue to have strong impact profiles in both their country and industry contexts.”
TriLinc approved the following term loan and trade finance transactions:
• $8 million as part of an existing $20 million senior secured trade finance facility with a Ghanaian power producer. With a fixed interest rate of 11.5 percent and maturity date of October 9, 2017, the transaction is secured by inventory and receivables.
• $161,018 as part of a new senior secured $1.5 million revolving trade facility with a Kenyan plastic packaging manufacturer. With a fixed interest rate of 11.5 percent and maturity date of October 9, 2017, the transaction is secured by inventory and receivables.
• $2.8 million 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 + 7.5 percent the transaction is set to mature on April 15, 2017 and is secured by a bill of exchange and sales contracts.
• $10 million as part of an existing trade finance facility with an Argentine agricultural intermediary. Secured by purchase contracts and receivables, the transaction is set to mature on July 16, 2017 and has a fixed interest rate of 9 percent.
• $1.5 million as part of an existing $4 million revolving trade finance facility with an Ecuadorian shrimp exporter. With a fixed interest rate of 9.25 percent, the transaction is set to mature on July 24, 2017 and is secured by inventory, accounts receivable, and purchase contracts.
• $1.1 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. With an interest rate of one month Libor +10.5 percent, the transaction is secured by inventory and receivables and is set to mature on July 17, 2017.
• $1 million to an 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 percent. With a maturity date of June 19, 2017, the transaction is secured by specific receivables and inventory destined for export.
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 October 31, 2016, the company has made $226.1 million in financing commitments for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.
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