[August 29, 2014] |
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TriLinc Global Impact Fund Makes Impact Investments in South Africa and Zambia
LOS ANGELES --(Business Wire)--
TriLinc Global Impact Fund ("TriLinc" or the "Company") announced today
that it has recently approved $3.62 million across two trade
finance facilities to companies in South Africa and Zambia. 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 on people and 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 August 12 and August 19, 2014, TriLinc facilitated two additional
draws totaling $622,000 against an existing $1,500,000 revolving trade
finance facility at a fixed interest rate of 15.00% to a South African
clothing importer and distributor. The transaction, set to mature on
November 4, 2014 and December 5, 2014, respectively, is secured by
specific clothing inventory being imported into South Africa from Asia
and sold to large retailers serving all of the country's market
segments, including low income consumers.
On August 22 and August 26, 2014, TriLinc funded $2,000,000 and
$1,000,000, respectively, as part of a $3,000,000 trade finance
transaction at a fixed interet rate of 12.50% to a Zambian agricultural
distributor engaged in the warehousing and trading of key agricultural
commodities including fertilizer, maize, soya beans, ground nuts and
seed. The transaction, set to mature on October 22, 2014, is supported
by a purchase and repurchase agreement that is secured by specific
receivables. The borrower has been awarded a large tender from a Zambian
parastatal purchasing board to supply purpose-made fertilizers that can
help local farmers maximize their crop yields to improve national food
security.
"TriLinc provides vital financing to expansion-stage SMEs based on the
conviction that the funding will support their ability to hire more
employees, produce more goods for local consumption and export, provide
training to locally-based employees and pay more taxes through increased
revenues," said Gloria Nelund, TriLinc CEO. "We believe that
facilitating access to finance to SMEs in developing economies can be
both a profitable investment proposition and an effective driver of
sustainable economic development."
About TriLinc Global Impact Fund
TriLinc is a 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. TriLinc 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. TriLinc's investment objectives
are to generate current income, capital preservation and modest capital
appreciation. In addition, the Company aggregates and analyzes social,
economic and environmental impact data to track progress and measure
success against stated objectives.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws and regulations. These
forward-looking statements are identified by their use of terms and
phrases such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict," "project,"
"should," "will" and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors that
may cause the actual results to differ materially from those anticipated
at the time the forward-looking statements are made. Although the
Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that the expectations will be attained or that any deviation
will not be material. The Company undertakes no obligation to update any
forward-looking statement contained herein to conform the statement to
actual results or changes in the Company's expectations.
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