TriLinc Global Impact Fund Makes Impact Investments in Sub-Saharan Africa
TriLinc Global Impact Fund has announced that it has recently approved $6.42 million in trade finance transactions to companies in Namibia 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:
On September 8, 2015, TriLinc funded $1,000,000 as part of an existing $2,000,000 purchase and repurchase trade finance facility at a fixed interest rate of 12.00% to a Namibian consumer goods importer and distributor. The transaction, set to mature on March 3, 2016, is secured by rice and sugar inventory. The borrower anticipates that TriLinc financing will support job creation in a region noted for its high unemployment.
Between September 8 and September 30, 2015, TriLinc funded four transactions totaling $4,099,713 as a part of two separate trade finance facilities with a total commitment size of $9,500,000 to a South African electronics company. With a fixed interest rate of 13.00%, all transactions are set to mature between January 7 and January 29, 2016 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 employment generation.
On September 9, 2015, TriLinc funded $1,000,000 as part of a new $2,000,000 purchase and repurchase trade finance facility at a fixed interest rate of 13.00% to a South African industrial chemicals distributor. The transaction, set to mature on November 24, 2015 is secured by specific inventory. The borrower anticipates that TriLinc financing will support job creation.
On September 17, 2015, TriLinc funded $316,322 as part of an existing $2,500,000 revolving senior secured trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. Set to mature on December 16, 2015, the transaction is secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
“TriLinc’s recent investments in Sub-Saharan Africa are representative of its commitment to supporting growth and prosperity throughout the region,” said Gloria Nelund, TriLinc CEO. “Driving this commitment is TriLinc’s support and financing of locally-owned small and medium-sized enterprises, which act as catalysts for economic growth and engines of social development in the communities where they operate.”