TriLinc Global Impact Fund has announced this week that it has approved an additional US$37.5mn in term loan and trade finance facilities to companies operating in Sub-Saharan Africa, Latin America, and Southeast Asia, bringing total financing commitments as of 31 July 2017 to US$356.4mn for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa, Latin America, and Southeast Asia
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 recently approved $37.5 million in term loan and trade finance transactions that meet the Company’s requirements for underwriting, economic development, and societal advancement, as described below:
On July 3, 2017, the Company funded US$1.08mn as part of a new US$3.5mn revolving senior secured trade finance facility to a pharmaceuticals distributor located in the United Arab Emirates that exports pharmaceutical components to Algeria. With an interest rate of six month LIBOR +13 per cent, the transaction is set to mature on 30 January 2018 and is secured by a pledge of financed goods, personal and corporate guarantees, and a credit insurance policy. TriLinc’s financing will be used to finance the purchase of pharmaceutical components from various pre-approved suppliers in India and China to be sold to one of the largest producers of generic pharmaceuticals in Algeria. All of the pharmaceutical components are produced in compliance with World Health Organization Good Manufacturing Practices, a requirement of the Algerian Ministry of Health. The borrower anticipates that TriLinc financing will help increase the availability of generic pharmaceutical options within Algeria.
On July 12, 2017, the Company funded US$758,712 as part of an existing US$8mn 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 +6 per cent, the transaction is set to mature on January 8, 2018, and is secured by a bill of exchange and sales contracts. TriLinc’s financing will facilitate the trade of London Metal Exchange registered, full plate nickel cathodes, which are used extensively as inputs in infrastructure development projects worldwide.
On July 28, 2017, TriLinc funded a US$15mn, 5.75-year term loan facility with a Kenyan freight and cargo transporter that services the port of Mombasa, the largest hub for trade in East Africa. With an interest rate of 12.80 per cent, the transaction is set to mature on 31 March 2023 and is secured by a second lien over all assets and property owned by the borrower, including personal and corporate guarantees. TriLinc’s financing will support the borrower in increasing the operational effectiveness of the port, which has a direct influence on the competitiveness of Kenya’s businesses, the availability of a variety of goods in the country, and the wider cost of goods in Eastern Africa. The borrower maintains its competitive advantage by being strategically located and serving as a one-stop shop for its customers through offering services such as remote online tracking, weighing of cargo, customs clearance, transportation arrangements, etc. in order to increase the port’s operational efficiency.
“TriLinc’s recent investment activity demonstrates our commitment to diversifying our portfolio across impactful industries around the world,” said Gloria Nelund, CEO of TriLinc. “By financing companies that range from a pharmaceuticals distributor exporting economical pharmaceutical components into Algeria, to a freight and cargo transporter increasing port efficiency in Kenya, TriLinc is supporting SMEs that drive access to new products and services in order to generate economic and social progress.”
