LOS ANGELES–(–)–TriLinc Global Impact Fund, LLC (“TriLinc Global Impact Fund” or “TGIF”) announced today that it recently approved $17 million in term loan transactions in Latin America and Sub-Saharan Africa. The transaction details are summarized below.
TGIF 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.
TGIF recently approved $17 million in transactions that meet TGIF’s requirements for underwriting, economic development, and societal advancement, as described below:
On January 21, 2020, TGIF funded $10,000,000 as part of a new five-and-a-half-year term loan facility to a sustainable packaging manufacturer in Ecuador. Priced at Libor +7.35%, the transaction is set to mature on June 18, 2025. Awarded with the Forest Stewardship Council’s Chain of Custody certification, the borrower solely sources its inputs from sustainable suppliers and is wholly focused on waste reduction for all packaging materials. Additionally, the borrower has an emphasis on utilizing recycled materials in its business operations wherever possible.
On January 28, 2020, TGIF funded $6,000,000 as part of an existing $23,000,000 senior secured trade finance facility to a South African electronics assembler. Priced at 12.00% the transaction is set to mature on February 27, 2020 and is secured by the stock delivered to the warehouse, with a collateral coverage ratio of 3.79x. The borrower anticipates that TriLinc’s financing will increase the supply of affordable and accessible mobile technology in the region.
On January 28, 2020, TGIF funded $1,000,000 as part of an existing $20,000,000 senior secured trade finance facility to a Mauritius-based vanilla exporter that sources from smallholder farmers in Madagascar. Priced at one-month Libor +10.5%, the transaction is set to mature on February 27, 2020 and is secured by inventory and receivables, with a collateral coverage ratio of 1.49x. The borrower is registered with the UN Global Compact and the Flavor & Extract Manufacturers Association and holds Fair Trade International and Rainforest Alliance certifications. The company actively works with smallholder vanilla producers and co-operatives to organize sustainable production that is focused on compliance with best practices for harvesting, processing, and preparation. TriLinc’s financing will provide the company’s smallholder farmer suppliers with access to new international markets and customers, including large U.S.-based conglomerates such as McCormick & Company.
“TGIF’s recent investment activities highlight our commitment to expanding our positive environmental and social impact in the Latin America and Sub-Saharan Africa regions,” said Gloria Nelund, CEO of TGIF. “Specifically, the sustainable packaging manufacturer sets the industry best practice for waste reduction in packaging materials while promoting the cost-effective nature of recycled materials in Latin America,” added Ms. Nelund.
About TriLinc Global Impact Fund
TGIF is a public non-traded, externally managed, limited liability company that makes impact investments in SMEs in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. TGIF invests in SMEs through experienced local market sub-advisors, and expects to create a diversified portfolio of financial assets consisting primarily of collateralized private debt instruments. In addition, TGIF aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives.
This press release contains forward-looking statements (including, without limitation, statements concerning the use of financing provided to borrowers and the expected repayment of financing extended to the borrowers) that are based on TGIF’s current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties, including, without limitation, the future operating performance of the borrower and those risks set forth in the “Risk Factors” section of TGIF’s most recent Annual Report on Form 10-K, as amended or supplemented by TGIF’s other filings with the Securities and Exchange Commission. Although these forward-looking statements reflect management’s belief as to future events, actual events or TGIF’s investments and results of operations could differ materially from those expressed or implied in these forward-looking statements. To the extent that TGIF’s assumptions differ from actual results, TGIF’s ability to meet such forward-looking statements may be significantly hindered. You are cautioned not to place undue reliance on any forward-looking statements. TGIF cannot assure you that it will attain its investment objectives.