TriLinc makes impact investments in Africa and Latin America

18 Nov 2016
Financial Nigeria

Summary

TriLinc invests in SMEs through experienced local market sub-advisors.

Gloria Nelund, Chief Executive Officer, TriLinc

TriLinc Global Impact Fund announced this week that it recently approved $24.6 million in term loan and trade finance transactions with companies operating in Africa and Latin America.

According to the statement issued by TriLinc on Wednesday, these investments demonstrate how the company seeks to deepen its relationship with borrowers that need access to timely and efficient capital and continue to have strong impact profiles in both their country and industry.

TriLinc is an impact investment fund that provides growth-stage loans and trade finance to established small and medium enterprises 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.

The company funded $8 million as part of an existing $20 million senior secured trade finance facility with a Ghanaian power producer. The borrower anticipates that TriLinc’s financing will continue to support increased access to energy for end-users in Ghana and will contribute to reducing the demand pressures and blackout frequency that currently burdens the country’s electric grid.

TriLinc also funded $161,018 as part of a new senior secured $1,500,000 revolving trade facility with a Kenyan plastic packaging manufacturer. The borrower anticipates that TriLinc’s financing will support its growth projections by enhancing both its productivity and competitive positioning in the local and regional markets.

TriLinc funded $2.8 million as part of an existing $8 million senior secured revolving receivables trade finance facility to a global metals trader based in the United Kingdom and operating in Africa. The financing will facilitate the trade of South African nickel cathodes, a critical input to iron and steel production, for further value-added processing.

An energy-efficient Morocco-based scrap metal recycler and processor also received TriLinc funding. It is anticipated that TriLinc’s financing will support the borrower’s strategy of enhancing its energy efficiency process and products, utilizing local micro, small, and medium size suppliers, increasing market access in West Africa, and growing its employee base. TriLinc also recently made investment in Equador.

“From supporting the production of critical infrastructure inputs in Morocco to the processing and export of fresh Ecuadorian seafood, TriLinc’s recent investment activity represents how we finance key agricultural and manufacturing industries that drive long-term economic development in Africa and Latin America,” said Gloria Nelund, TriLinc CEO. “Moreover, these investments demonstrate how TriLinc seeks to deepen its relationship with borrowers that need access to timely and efficient capital and continue to have strong impact profiles in both their country and industry contexts.”

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.


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