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TriLinc Global Impact Fund makes impact investments in sub-Saharan Africa and Latin America

TriLinc Global Impact Fund has recently approved USD17.0 million in term loan and trade finance transactions to companies in South Africa, Kenya, Argentina, and Brazil.

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.
 
On 3 November and 16 November, 2015, TriLinc funded two separate transactions totalling USD1,519,560 as part of an existing USD11,000,000 revolving senior secured 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 per cent, the transactions are set to mature on 25 February and 15 March, 2016, respectively, and are secured by receivables as well as specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support job creation.
 
Between 6 November and 20 November, 2015, TriLinc funded three separate transactions totalling USD375,182 as part of a new USD1,000,000 revolving senior secured trade finance facility with a Kenyan rice distributor that imports and supplies rice and other foodstuffs throughout Kenya. With a variable interest rate of three month Libor +11.00 per cent, the transactions are set to mature between 4 February and 18 February, 2016 and are secured by receivables as well as inventory. The borrower anticipates that TriLinc financing will enhance food security in Kenya and support employment generation.
 
On 16 November and 30 November, 2015, TriLinc funded two separate transactions totalling USD5,000,000 as part of an existing USD11,000,000 revolving trade finance facility at a fixed interest rate of 9.00 per cent to an Argentine agricultural intermediary. Both transactions are set to mature on 10 January, 2016 and are secured by the assignment of purchase contracts and receivables. Additionally, on 16 November, 2015, TriLinc funded USD2,000,000 as part of an existing USD8,000,000 revolving trade finance facility at an interest rate of 11.98 per cent to an Argentine meat production and processing company. Secured by purchase contracts and receivables, the transaction is set to mature on 30 April, 2016. Both borrowers anticipate that TriLinc financing will support economic growth through job creation, increased exports and/or 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 17 November, 2015, TriLinc funded USD5,500,000 as part of a new USD14,000,000 senior secured five-year term loan commitment to a Brazilian information technology service provider. With a maturity date of 31 October, 2019 and interest rate of 13.50 per cent, the transaction is secured by service contracts and receivables. The borrower anticipates that TriLinc financing will enable the company to pursue its long-term growth objectives and support job creation.
 
On 17 November, 2015, TriLinc also funded USD137,572 as part of an existing USD2,500,000 revolving senior secured trade finance facility at a fixed interest rate of 15.00 per cent to a South African textile distributor. Set to mature on 11 February, 2016, the transaction is secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
 
On 19 November, 2015, TriLinc funded three separate transactions totalling USD2,500,000 as part of an existing USD2,500,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50 per cent to a South African mine remediation company. Engaged in the removal and sale of metal tailings from a recently shuttered zinc mine, the borrower’s activities also aim to mitigate the environmental effects of the former mine by remediating the land site, creating a rehabilitation fund, dismantling and disposing mining equipment, and monitoring ground water. The borrower anticipates that TriLinc’s financing will enable the borrower to generate new mine servicing and remediation jobs. Once the tailings extraction is complete and the site is deemed to be completely rehabilitated by South African regulatory authorities, the borrower intends to donate the property to the community for affordable housing developments.
 
“TriLinc’s recent investment in Sub-Saharan Africa and Latin America demonstrate the Company’s ability to proactively initiate partnerships with new borrowers and deepen relationships within our existing portfolio,” says Gloria Nelund, TriLinc CEO. “Additionally, these latest transactions represent how TriLinc is investing across a variety of impact themes that support the fund’s economic development thesis while seeking to enhance agricultural productivity, food security, access to technology, and environmental sustainability.”
 

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