TriLinc Global Impact Fund Invests $36.8 Million in Emerging Markets

TriLinc Global Impact Fund, a non-traded, externally managed, limited liability company, has approved $36.8 million in term loan and trade finance transactions with companies operating in Africa, Latin America, and Southeast Asia. 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 Sub-Saharan Africa and Southeast Asia demonstrate the company’s continuing ability to support a variety of industries and impact themes throughout the world,” said Gloria Nelund, TriLinc CEO. “From helping to finance projects ranging from the production of key consumer household products in Kenya to the enhancement of a critical infrastructure project in Indonesia, these latest transactions strengthen TriLinc’s economic development thesis of supporting local growth industries that also seek to generate measurable economic and social benefits.”

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

• $500,000 as part of an existing $2 million purchase and repurchase trade finance facility at a fixed rate of 12 percent to a Namibian consumer goods importer and distributor. The transaction, set to mature on October 29, 2017, is secured by rice, sugar, and other fast moving consumer goods inventory.

• Five separate transactions, totaling $4.3 million, as part of an existing $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, the transactions are secured by inventory, accounts receivable, and purchase contracts.

• $1.7 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 transactions are secured by inventory and receivables.

• $593,435 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 percent. The transaction is secured by specific receivables and inventory destined for export.

• $4.7 million as part of an existing $11 million senior secured trade finance facility to a South African electronics assembler. With an interest rate of 13 percent, the transactions are secured by stock that is delivered to the company’s warehouse.

• $200,000, through two separate transactions, as part of an existing $16 million senior secured five-year term loan commitment to a locally-owned Nigerian marine logistics provider. One $100,000 transaction will accrue interest at one month Libor +10.5 percent, and the second $100,000 transaction will accrue interest at one month Libor +10.5 percent plus 4.68 percent in deferred fixed interest.

• $2 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 secured by a bill of exchange and sales contracts.

• $15 million as part of a new 3-year term loan facility with an infrastructure and logistics provider in Indonesia. Priced at 20.17 percent on average through the facility’s life, this transaction is secured by a first ranking pledge over the company’s shares, subsidiary company ownership, and specific port assets.

• $2 million as part of a new 3-year $6.5 million senior secured term loan facility with a fast-moving consumer goods manufacturer and distributor in Zambia. Priced at 11 percent, the transaction is secured by the underlying equipment. TriLinc’s financing will serve to finance the purchase of existing plant, machinery, and equipment and will be leased to own to the borrower.

• $5.6 million to a Mauritian vanilla exporter as part of an existing $12 million senior secured trade finance facility. Priced at one month Libor +10.5 percent, the transaction is secured by inventory and receivables.

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 November 30, 2016, the company has made $243.6 million in financing commitments for business expansion and socioeconomic development through its holdings in Africa, Latin America and Southeast Asia.

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