U.S. Investment firm approves trade finance facilities to African companies
By Alan Green
The California-based U.S. investment company TriLinc Global this Monday announced it has approved trade finance facilities to the tune of $15.5 million for companies in South Africa, Zambia and Argentina, bringing the company’s total commitments to $74.7 millions for business and socio-economic development through its holdings in Africa and Latin America.
The company announced that on February 4 and February 10, 2015, it funded $375,447 and $880,923, respectively, as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to a South African textile distribution company. One of the expected benefits of the financing is to generate employment. On February 6, 2015, TriLinc also funded $250,000 as part of an existing $3,250,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50% to a South African mine remediation company. On February 13, 2015, TriLinc also funded $2,000,000 and $3,500,000, respectively, as part of an existing $6,000,000 revolving trade finance facility at a fixed rate of 10.90% to an Agentine dairy cooperative.
To go back to TriLinc’s operations in Africa, it should also be noted that the U.S. firm on February 13, 2015 funded $210,752 as part of a new $500,000 purchase and repurchase trade finance facility at a fixed interest rate of 19.5% to a South African waste management equipment distributor. The expected benefits of the deal include the promotion of the participation of women and minorities in the workplace. Also, on February 20, 2015, TriLinc funded $1,000,000 as part of an existing $2,800,000 purchase and repurchase trade finance transaction at a fixed interest of 14.50 to a South African meat-processing company in the rural provinces. The deal is expected to support the borrower’s continued growth through the expansion of its distribution network and the addition of retail outlets in underserved low- to middle-income consumer market. Thisis not to mention the borrower’s plan to expand its employee base.
Finally, on February 24, 2015, TriLinc funded $7,280,000 as part of an existing $15,000,000 trade finance facility at a blended interest rate of 12.08% to a Zambian agricultural distributor operating in warehousing and trading of essential commodities that include fertilizer, maize, soy beans, groundnuts and seed. The transaction is expected to support job creation and help farmers improve agricultural productivity and food security.
TriLinc is an impact investing fund that provides growth-stage and trade finance to established small and medium enterprises in developing economies to ease the difficult access to affordable capital.