TriLinc Global Impact Fund Makes Impact Investments in Latin America and Sub-Saharan Africa - Global Trade Magazine
  February 24th, 2016 | Written by

TriLinc Global Impact Fund Makes Impact Investments in Latin America and Sub-Saharan Africa

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  • TriLinc’s financing commitments total $131.1 million through its holdings in Sub-Saharan Africa and Latin America.
  • TriLinc’s investments demonstrate the company’s commitment to local economic development through international trade.
  • Impact Investing has the objective of achieving competitive financial return as well as creating impact in communities.

TriLinc Global Impact Fund has approved $9.5 million in term loan and trade finance facilities to companies in Argentina, Ecuador, and South Africa.

That brings the fund’s total financing commitments to $131.1 million for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa and Latin America.

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 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 Latin America and Sub-Saharan Africa demonstrate the Company’s sustained commitment to catalyzing local economic development through international trade,” said Gloria Nelund, TriLinc CEO. “By extending trade finance facilities to growth-stage SMEs, TriLinc has become a reliable source of timely and flexible export and import financing that enhances the competitive positioning of its borrowers in the global marketplace while also having positive social and environmental impacts in the communities where they operate.”

TriLinc funded $9 million as part of three existing trade finance facilities for companies located in Argentina. Three separate transactions totaling $7 million went an agricultural intermediary as part of an existing $15,000,000 trade finance facility at an interest rate of 9.00 percent.

TriLinc funded $2,000,000 to an oilseed distribution company as part of an existing $5,100,000 revolving trade finance facility at an interest rate of 8.89 percent, secured by purchase contracts and receivables.

Both 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.

TriLinc also funded $243,747 to an Ecuadorian fish processing and exporting company as part of an existing $2,000,000 revolving secured trade finance facility at a fixed interest rate of 9.00 percent. The transaction is secured by specific receivables and inventory destined for export. The borrower anticipates that TriLinc financing will support employment generation and increases in employee wages.

TriLinc funded three separate transactions totaling $280,181 as part of an existing $2,500,000 revolving senior secured trade finance facility at a fixed interest rate of 15.00 percent to a South African textile distributor. The borrower anticipates that TriLinc financing will support employment generation.