TriLinc Global Impact Fund announced today that it has approved a total of $15.2 million in term loan and trade finance facilities to companies in Argentina, Chile, Nigeria, and South Africa, bringing total financing commitments as of December 31, 2015 to $128.6 million for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa and Latin America.
TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $15.2 million in term loan and trade finance transactions to companies in Argentina, Chile, Nigeria, and South Africa. 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 (“SMEs”) 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 approved the trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
Between December 3 and December 29, 2015, TriLinc funded $11,500,000 as part of three existing facilities for companies located in Argentina. On December 3, 2015, TriLinc funded $2,500,000 to a dairy cooperative as part of an existing $6,000,000 revolving trade finance facility at a fixed interest rate of 10.90%. Secured by purchase contracts and receivables, this transaction is set to mature on March 31, 2016. On December 11, 2015, TriLinc funded $1,000,000 to a meat production and processing company as part of an existing $9,000,000 revolving trade finance facility at an interest rate of 11.98%. Secured by purchase contracts and receivables, this transaction is set to mature on April 30, 2016. Between December 18 and December 29, 2015,
TriLinc funded three separate transactions totaling $8,000,000 to an agricultural intermediary as part of an existing $13,000,000 trade finance facility at an interest rate of 9.00%. Secured by purchase contracts and receivables, the first transaction matured on January 10, 2016 and the remaining two transactions are set to mature on September 3 and September 23, 2016. All three borrowers anticipate that TriLinc financing will support economic growth through job creation, increased exports, and increased agricultural productivity. For TriLinc’s Argentine borrowers, the Company provides export finance, where the international buyers are typically developed market companies or large conglomerates.
On December 4 and December 18, 2015, TriLinc funded $705,510 and $1,000,000, respectively, as part of an existing $11,000,000 revolving trade finance facility with a South African electronics company that assembles affordable cellular phones and digital television conversion sets. With a fixed interest rate of 13.00%, the transactions are set to mature on February 24 and April 15, 2016, respectively, and are secured by receivables as well as specific inventory being imported into South Africa from Asia. It is anticipated that TriLinc financing will support the borrower in satisfying growing customer demand and increasing its employee base.
On December 16 and December 18, 2015, TriLinc funded $1,000,000 and $900,000, respectively, as part of a new $2,000,000 revolving trade finance facility with a Chilean chia seed exporter. With a fixed interest rate of 11.50%, both transactions are set to mature on December 11, 2016, respectively, and are secured by inventory and receivables. The borrower anticipates that TriLinc financing will support the growth of its export business, improve agricultural productivity, and contribute to healthy customer lifestyles.
On December 21, 2015, TriLinc funded $130,000 as part of an existing $16,050,000 senior secured five-year term loan commitment to a locally-owned Nigerian marine logistics provider. With a maturity date of September 16, 2020, the $130,000 funding will accrue interest at a variable rate of one month Libor +10.5% plus 4.68% in deferred fixed interest. It is anticipated that TriLinc financing will enable the company to pursue its long-term growth objectives while supporting employee capacity-building initiatives and employment generation.
“TriLinc’s recent investments represent how the Company utilizes its in-country partners in Sub-Saharan Africa and Latin America to originate transactions with locally-owned businesses looking to promote the competitive advantages of their developing economies,” said Gloria Nelund, TriLinc CEO. “From procuring and exporting chia seed in Chile to employing women – who are underrepresented in South Africa’s labor force – to produce value-add electronic apparatus, these latest transactions demonstrate the breadth and depth of TriLinc’s investment and impact practice in fostering opportunities that support local growth industries and generate measureable economic and social benefits.”