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TriLinc’s Impact Fund Invests ‘$9.7 million’ In Guatemala And South Africa



12/19/2015

TriLinc uses “trade finance transaction” to invest in African countries.


Dailycsr.com – 17 December 2015 – In an announcement, the TriLinc Global Impact Fund revealed that on the 17th of November 2015, the organisation has assigned “$9.7 million” for utilising “in trade finance transactions” with the companies based at Guatemala and South Africa.
 
Being an “impact investing fund”, TriLinc supplies “growth-stage loans and trade finance” to the “established” enterprises of small to medium rung, situated in the “developing” economic zones, as “access to affordable capital is significantly limited” in those areas.
 
Defining ‘impact investing’, would mean making an investment by keeping a “specific objective of achieving a competitive financial return” combined with spreading positive impacts across the global communities in the process.
 
The transactions for trade finance to be sanctions need to meet the certain criteria for endorsing “economic development and societal advancement”. Moreover, the Choef Executive Officer at TriLinc, Gloria Nelund stated:
“These recent investments in South Africa and Guatemala underscore TriLinc’s critical role in supporting growth-stage SMEs as engines of economic development. Core to TriLinc’s catalytic role is its provision of flexible and timely financing to locally-owned enterprises seeking to increase revenue and create jobs by competing in the global marketplace.”
 
Here are the details of transaction sanction by TriLinc in the past few months, reported as per BusinessWire:
“Between October 6 and October 14, 2015, TriLinc funded $1,345,634 at a fixed interest rate of 10.90% and three transactions totaling $5,190,000 at a fixed interest rate of 10.38% as part of a new senior secured $10,000,000 trade finance facility with a South African agricultural supplies distributor. The transactions, set to mature between November 29, 2015 and January 14, 2016, are supported by specific inventory being imported into South Africa. The borrower anticipates that TriLinc financing will support employment generation.
 
“Between October 7 and October 30, 2015, TriLinc funded $586,647 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 between January 13 and 28, 2016, the transactions are secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support employment generation.
 
“On October 13, 2015, TriLinc funded $1,173,000 as part of an existing $11,000,000 revolving senior secured trade finance facility with a South African electronics company that assembles affordable cellular phones and digital television conversion sets. With a fixed interest rate of 13.00%, the transaction is set to mature on February 9, 2016 and is secured by receivables as well as specific inventory being imported into South Africa from Asia. The borrower anticipates that TriLinc financing will support job creation.
 
“On October 15, 2015, TriLinc funded $1,000,000 as part of a new $2,000,000 revolving senior secured trade finance facility with a Guatemalan sesame seed processor and exporter. With a fixed interest rate of 12.00%, the transaction is set to mature on March 31, 2016 and is secured by receivables as well as specific purchase contracts. The borrower anticipates that TriLinc financing will support increased agricultural productivity in Guatemala and create jobs.
 
“On October 30, 2015, TriLinc funded $440,000 as part of an existing $2,000,000 purchase and repurchase trade finance facility at a fixed interest rate of 13.00% to a South African industrial materials distributor. The transaction, set to mature on December 3, 2015 is secured by specific inventory. The borrower anticipates that TriLinc financing will support job creation”.






References:
http://www.businesswire.com/