Filed Pursuant to Rule 424(b)(3)
Registration No. 333-185676
TRILINC GLOBAL IMPACT FUND, LLC
SUPPLEMENT NO. 12 DATED February 15, 2017
TO THE PROSPECTUS DATED APRIL 28, 2016
This prospectus supplement (“Supplement”) is part of and should be read in conjunction with the prospectus of TriLinc Global Impact Fund, LLC (the “Company”), dated April 28, 2016, as supplemented by Prospectus Supplement No. 1, dated May 11, 2016, Prospectus Supplement No. 2, dated June 9, 2016, Prospectus Supplement No. 3, dated July 7, 2016, Prospectus Supplement No. 4, dated August 17, 2016, Prospectus Supplement No. 5, dated September 14, 2016, Prospectus Supplement No. 6, dated September 22, 2016, Prospectus Supplement No. 7 dated October 13, 2016, Prospectus Supplement No. 8 dated October 20, 2016, Prospectus Supplement No. 9 dated November 16, 2016, Prospectus Supplement No. 10 dated December 12, 2016, and Prospectus Supplement No. 11 dated January 17, 2017 (the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus.
The purposes of this Supplement are as follows:
| A. | To provide information regarding our public offering; |
| B. | To provide information regarding distributions declared; |
| C. | To update the section of the Prospectus titled “Business”; |
| A. | Status of Our Public Offering |
As of February 15, 2017 we had raised gross proceeds of approximately $312.6 million from the sale of approximately 32.5 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.
| B. | Declaration of Distributions |
On January 19, 2017, with the authorization of our board of managers, the Company declared distributions for all classes of units for the period from January 1 through January 31, 2017. These distributions were calculated based on unitholders of record for each day in an amount equal to $0.00197268 per unit per day (less the distribution fee with respect to Class C units). On February 1, 2017, $963,250 of these distributions were paid in cash and on January 31, 2017, $837,472 were reinvested in the Company’s units for those investors participating in the Company’s unit Distribution Reinvestment Plan. Some or all of the Company’s distributions have been and may continue to be paid from sources other than cash flow from operations, such as capital contributions from the Sponsor, cash resulting from a waiver or deferral of fees, and/or proceeds from this offering.
| C. | Update to the Section Titled “Business” |
On February 1, 2017, the Company, through our Advisor, entered into asub-advisory agreement with TransAsia Private Capital Ltd., to become asub-advisor for the Company’s investments in Southeast Asia.
| 1. | a. The entire fourth paragraph in the “Business—Investment Strategy—Expertise—Investing withSub-advisors” section of the Prospectus on page 64 of the Prospectus is deleted in its entirety and replaced with the following: |
As of January 31, 2017, TriLinc Advisors has selected ten institutional-classsub-advisors with access to a robust pipeline of highly selective investment opportunities. Collectively, thesub-advisors have deployed over $42 billion in developing economy debt transactions. The management teams have an average of approximately 23 years of local market experience. The following are the selected managers to act assub-advisors:
b. The following is inserted as the last bullet point in the “Business—Investment Strategy—Expertise—Investing withSub-advisors” section of the Prospectus on page 67 of the Prospectus:
TransAsia Private Capital Ltd. (“TransAsia”): is a Hong Kong based asset management firm, established in 2013, focusing on extendingshort-and long-term trade finance tomid-sized private companies in South and Southeast Asia, such as trading companies, agricultural producers, and manufacturers, who sell directly
to overseas buyers. Since its inception, TransAsia has deployed approximately $350 million in over 850 Asian trade finance transactions with no default losses. TransAsia’s extensivein-country network allows the firm to leverage its reputation in the region to strengthen historical relationships and develop new relations with prospective clients. TransAsia’s competitive advantage is supported by its sophisticated institutional investor base.
TransAsia has recognized that over the past five years, the demand for Asian trade finance, particularly for longer-dated transactions, has outpaced supply due to changes in regulatory capital requirements. TransAsia aims to reduce the widening gap in the lending market, created in large part by banks that have reallocated credit lines to larger borrowers. TriLinc’s partnership with TransAsia will provide longer dated trade finance and term loans to borrowers in Indonesia, Malaysia, Philippines, Cambodia, Thailand, Singapore, and Hong Kong, matching the demand of target borrower companies in the region, and helping them achieve sustainable growth through more flexible financing options.
TransAsia’s three managing partners are well-versed in Asian debt asset management with 90 years of combined experience in banking, private equity, and private debt. Each partner has robust experience in Asian markets developed at leading global financial institutions such as Lloyds, Chase Bank, Income Partners Asset Management, MeesPierson/Fortis Bank, and HypoVereinsbank. TransAsia’s strong credit analysis and structuring expertise is further supported by anin-house credit scoring system that is used for risk structuring, management, and monitoring.
c. The map in the “Business—Investment Strategy—Expertise—Investing withSub-advisors” section of the Prospectus on page 68 of the Prospectus is deleted in its entirety and replaced with the following:
II year history in private investments Over $490 million in transaction experience I Latin America focus I Credit team has combined experience of over 75 years 8 year history in trade finance Over $2.4 billion in transaction experience Sub-Saharan Africa focus Principals have combined experience of over 35 years 9 year history in debt and equity investments Over $15 billion in credit transaction experience Southeast Asia focus Principals have combined experience of over 70 years 4 year history in direct lending and trade finance II Over $300 million in transaction experience Central America & South America focus Principals have combined experience of 16 years III 9 year history in trade finance Over $450 million in transaction experience Sub-Saharan Africa focus Principals have combined experience of 70 years 13 year history in direct lending Over $107 million in transaction experience VII Southeast Asia focus Principals have combined experience of 50 years 9 year history in direct lending Over $110 million in transaction experience IV Latin America focus, primarily Mexico Principals have combined experience of 45 years 12 year history in private investments Over $14 billion in transaction experience V Sub-Saharan Africa focus Credit team has combined experience of over 50 years Over 3 year history in direct lending Over $350 million in transaction experience Southeast Asia focus Principals have combined experience of 90 years 20 year history in international trade finance Over $9 billion in transaction experience international focus Principals have combined experience of 60 years I) Represents experience and geographical focus of The Rohatyn Group’s Latin American credit strategy. II) Represents deletion of former co-founder’s track record. III) Represents deletion of former co-founder’s experience and addition of two partners’ experience. IV) Information pertains to Alsis’ asset-based lending strategy. V) Represents the combined previous experience of Helios’ credit team. VI) Information pertains to AIC’s senior advisors’ experience. VII) Information pertains to EFA’s term loan strategy in emerging Asia.
| 2. | The following information updates and supplements the “Business—Investments—Overview” section of the Prospectus to provide certain information regarding the Company’s investment portfolio as of January 31, 2017: |
Investments
Since the Company commenced operations and through January 31, 2017, the Company has funded $502.5 million in aggregate investments, including $28 million in temporary investments. Of the aggregate investment amount, the Company has received $268 million in full aggregate transaction repayments from existing and exited trade finance, term loan, and temporary investment facilities. Of the aggregate transaction repayment amount, approximately $112.6 million represents transactions of trade finance, term loan, and temporary investment facilities that are closed and no longer part of the Company’s portfolio.
As of January 31, 2017 the Company had the following investments:
| Description | Sector | Country | Investment Type | Maturity1 | Interest Rate2 | Total Loan Commitment3 | Total Amount Outstanding4 | |||||||||||||
Agriculture Distributor | Farm-Product Raw Materials | Argentina | Trade Finance | 7/16/2017 | 9.00 | % | $ | 15,000,000 | $ | 10,000,000 | ||||||||||
Agricultural Products Exporter II | Farm-Product Raw Materials | Singapore | Trade Finance | 7/02/2017 | 11.50 | % | $ | 10,000,000 | $ | 10,000,000 | ||||||||||
Beef Exporter | Meat Products | Argentina | Trade Finance | 6/30/2017 | 11.50 | % | $ | 9,000,000 | $ | 9,000,000 | ||||||||||
Chia Seed Exporter | Field Crops, Except Cash Grains | Chile | Trade Finance | 12/11/2016- 3/11/2017 | 10.90 | % | $ | 2,500,000 | $ | 2,140,571 | ||||||||||
Clean Diesel Distributor | Bulk Fuel Stations and Terminals | Peru | Term Loan | 8/1/2019 | 11.50 | % | $ | 15,000,000 | $ | 15,000,000 | ||||||||||
Consumer Goods Distributor | Groceries and Related Products | Namibia | Trade Finance | 10/29/2017 | 12.00 | % | $ | 2,000,000 | $ | 500,000 | ||||||||||
DairyCo-Operative | Dairy Products | Argentina | Trade Finance | 7/29/2017 | 10.67 | % | $ | 6,000,000 | $ | 6,000,000 | ||||||||||
Diaper Manufacturer | Converted Paper and Paperboard Products | Peru | Term Loan | 12/22/2016- 7/5/2017 | 12.35 | % | $ | 4,500,000 | $ | 3,850,000 | ||||||||||
Electronics Assembler | Miscellaneous Electrical Machinery, Equipment, and Supplies | South Africa | Trade Finance | 5/21/2017- 11/20/2017 | 12.83 | % | $ | 11,000,000 | $ | 5,484,250 | ||||||||||
Farm Supplies Distributor5 | MiscellaneousNon-Durable Goods | Zambia | Trade Finance | 10/07/2015- 5/3/2016 | 12.43 | % | $ | 10,000,000 | $ | 5,078,526 | ||||||||||
Fish Processor & Exporter | Miscellaneous Food Preparations and Kindred Products | Ecuador | Trade Finance | 6/19/2017 | 9.00 | % | $ | 2,000,000 | $ | 1,058,273 | ||||||||||
FMCG Manufacturer | Soap, Detergents, and Cleaning Preparations | Zambia | Term Loan | 11/16/2019 | 11.00 | % | $ | 6,500,000 | $ | 2,000,000 | ||||||||||
Fruit & Nut Distributor | Groceries and Related Products | South Africa | Trade Finance | 5/22/20156 | 12.00 | % | $ | 1,250,000 | $ | 632,883 | ||||||||||
Hospitality Service Provider | Hotels and Motels | Cabo Verde | Term Loan | 8/21/2021 | 13.50 | % | $ | 17,000,000 | $ | 17,000,000 | ||||||||||
Integrated Steel Producer | Steel Works, Blast Furnaces, and Rolling and Finishing Mills | Zambia | Trade Finance | 8/14/2017- 9/2/2017 | 13.00 | % | $ | 6,000,000 | $ | 6,000,000 | ||||||||||
Infrastructure and Logistics Provider | Highway and Street Construction, Except Elevated Highways | Indonesia | Term Loan | 11/22/2019 | 20.67 | %7 | $ | 15,000,000 | $ | 15,000,000 | ||||||||||
International Development Logistics Provider8 | Lumber and Other Construction Materials | Italy | Trade Finance | N/A | N/A | $ | 5,000,000 | $ | 0 | |||||||||||
IT Service Provider | Computer Programming and Data Processing | Brazil | Term Loan | 10/31/2019 | 13.50 | % | $ | 14,000,000 | $ | 10,040,693 | ||||||||||
Machinery and Equipment Provider | Machinery, Equipment, and Supplies | United Kingdom | Trade Finance | 1/29/2017 | 12.00 | % | $ | 1,500,000 | $ | 11,482 | ||||||||||
Marine Logistics Provider | Services Incidental to Water Transportation | Nigeria | Term Loan | 9/16/2020 | 14.97 | %9 | $ | 16,050,000 | $ | 13,233,856 | ||||||||||
Meat Processor II | Meat Products | South Africa | Trade Finance | 5/19/2017 | 14.50 | % | $ | 2,800,000 | $ | 446,057 | ||||||||||
Metals Trader | Metals and Minerals, Except Petroleum | United Kingdom | Trade Finance | 2/25/2017- 12/31/2017 | 9.24 | % | $ | 8,000,000 | $ | 6,587,667 | ||||||||||
Mine Remediation Company10 | Metal Mining Services | South Africa | Trade Finance | N/A | N/A | $ | 2,500,000 | $ | 0 | |||||||||||
Oilseed Distributor | Fats and Oils | Argentina | Trade Finance | 10/15/2016- 12/15/2016 | 8.75 | % | $ | 6,000,000 | $ | 6,000,000 | ||||||||||
| Description | Sector | Country | Investment Type | Maturity1 | Interest Rate2 | Total Loan Commitment3 | Total Amount Outstanding4 | |||||||||||||||||||
Plastic Products Manufacturer | Miscellaneous Plastics Products | Kenya | | Trade Finance | | 10/9/2017 | 11.50 | % | $ | 1,500,000 | $ | 161,018 | ||||||||||||||
Power Producer | Electric Services | Ghana | | Trade Finance | |
| 3/10/2017- 10/9/2017 |
| 11.50 | % | $ | 20,000,000 | $ | 19,500,000 | ||||||||||||
Property Developer11 | Land Subdividers and Developers | Namibia | | Term Loan | | 8/15/2021 | 12.50 | % | $ | 15,000,000 | $ | 15,000,000 | ||||||||||||||
Railway Equipment Provider | Rental of Railroad Cars | | South Africa | | | Term Loan | | 1/31/2020 | 12.00 | % | $ | 5,000,000 | $ | 4,412,222 | ||||||||||||
Scrap Metal Recycler12 | Secondary Smelting and Refining of Nonferrous Metals | Morocco | | Trade Finance | | 7/17/2017 | 11.03 | % | $ | 9,000,000 | $ | 7,817,523 | ||||||||||||||
Sesame Seed Exporter13 | Farm-Product Raw Materials | Guatemala | | Trade Finance | | 3/31/2016 | 12.00 | % | $ | 2,000,000 | $ | 907,565 | ||||||||||||||
Shrimp Exporter14 | Miscellaneous Food Preparations and Kindred Products | Ecuador | | Trade Finance | | 6/6/2017 | 9.25 | % | $ | 6,000,000 | $ | 5,997,977 | ||||||||||||||
Sugar Producer15 | Field Crops, Except Cash Grains | Brazil | | Term Loan | | 5/15/2017 | 12.43 | % | $ | 3,000,000 | $ | 2,683,223 | ||||||||||||||
Tin Producer | Primary Smelting and Refining of Nonferrous Metals | Indonesia | | Term Loan | | 6/30/2020 | 12.00 | % | $ | 3,000,000 | $ | 3,000,000 | ||||||||||||||
Tuna Processor and Exporter16 | Miscellaneous Food Preparations and Kindred Products | Ecuador | | Trade Finance | | 5/9/2017 | 9.50 | % | $ | 5,000,000 | $ | 3,677,458 | ||||||||||||||
Vanilla Exporter | Groceries and Related Products | Mauritius | | Trade Finance | |
| 7/31/2017- 11/23/2017 |
| 11.08 | %17 | $ | 12,000,000 | $ | 8,903,589 | ||||||||||||
Investment Portfolio Total | $ | 270,100,000 | $ | 217,124,833 | ||||||||||||||||||||||
| 1 | The Company’s trade finance borrowers may be granted flexibility with respect to repayment relative to the stated maturity date to accommodate specific contracts and/or business cycle characteristics. This flexibility in each case is agreed upon between the Company and thesub-advisor and between thesub-advisor and the borrower. The Company has adjusted the disclosure in the above table to reconcile the maturity dates for its investments. Previously, the Company has presented targeted rather than maximum maturity dates for certain of its investments where such dates were different. Positions with multiple transactions may have different maximum maturity dates, which are reflected in the maturity date ranges. |
| 2 | Interest rates are as of January 31, 2017 and, where applicable, are weighted averages amongst multiple transactions. Interest rates include contractual rates and accrued fees where applicable. |
| 3 | The total loan commitment represents the maximum amount that can be borrowed under the agreement. The actual amount drawn on the loan by the borrower may change over time. Loan commitments are subject to availability of funds and do not represent a contractual obligation to provide funds to a borrower. |
| 4 | The total amount outstanding represents the actual amount borrowed under the loan as January 31, 2017. In some instances where there is a $0 balance, the borrower may have paid back the original amount borrowed under a trade finance facility and under an agreement, may borrow again. |
| 5 | The Company’s trade finance facility with the Farm Supplies Distributor serves to finance the shipment of farm supplies to a parastatal organization of the Government of Zambia and is secured by receivables. The Company has not received any payments on this investment since January 29, 2016. The delay in repayment is due to slow payment of the receivables by the Government of Zambia. The Company has determined that there is sufficient collateral, including an insurance policy should the Farm Supplies Distributor not pay, to cover the entire balance due from borrower. On December 1, 2016, thesub-advisor has called an event of default on the investment and the Company initiated a draw against the insurance policy. |
| 6 | As of March 31, 2016, the Company, together with itssub-advisor, had agreed to further extend the principal maturity date to facilitate the strategic sale of the Fruit & Nut Distributor, which closed in June 2016. On June 30, 2016, the Company placed the Fruit & Nut Distributor onnon-accrual status effective February 1, 2016 and a restructure of the loan is being documented. Small payments are scheduled to be made on a quarterly basis. The new shareholder has injected equity into the business and small principal payments derived from the operations of the company have been received. |
| 7 | The loan will provide for a net interest rate to the Company of 18.5%, 20%, and 22% in year 1, 2, and 3 respectively. |
| 8 | The borrower has repaid all capital to the Company. |
| 9 | The interest rate is a weighted average interest rate between four separate transactions. One transaction has an interest rate of 10.50%, one transaction has a variable interest rate of one month Libor +10.5%, and the remaining two transactions, totaling $11.5 million, include an additional 4.68% rate in deferred fixed interest. |
| 10 | The borrower has repaid all capital to the Company. |
| 11 | On January 4, 2017, the Company funded $14,850,000 as part of a new $15,000,000 senior secured four-year term loan to a Namibian property developer. Priced at 12.50%, the term loan is set to mature on August 15, 2021 and is secured by a second-lien mortgage on the land bank. |
| 12 | On January 13, 2017, the Company funded $167,578 as part of an existing $9,000,000 senior secured trade finance facility to an energy efficient Moroccan-based scrap metal recycler and processor. With an interest rate of one month Libor +10.50%, the transaction is secured by inventory and receivables and is set to mature on July 17, 2017. |
| 13 | During 2016, the Sesame Seed Exporter lost a major customer, which resulted in a slowdown in business, affecting its ability to repay the amount due under the participation. However, the Sesame Seed Exporter has been able to secure new customers to replace the lost order(s), |
| which will enable the Sesame Seed Exporter to start making payments to the Company. The Company has determined that there is sufficient collateral to support the repayment of this facility. Repayments from these new contracts started in the month of October. |
| 14 | Between January 4, 2017 and January 31, 2017, the Company funded ten separate transactions, totaling $6,780,000 as part of an existing $6,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter. With a fixed interest rate of 9.25%, the transactions are set to mature on June 6, 2017. The transactions are secured by inventory, accounts receivable, and purchase contracts. |
| 15 | On August 27, 2015, the Company was informed that the Sugar Producer had filed for judicial recuperation with the local court in Brazil. On March 31, 2016, the Company placed the Sugar Producer onnon-accrual status effective August 27, 2015. On June 14, 2016, the Company reached an agreement with the Sugar Producer on a repayment plan. The details of this plan have been ratified by the court and include the full repayment of all principal and interest that is due. The first payment under this plan, which includes principal and interest, has been made in full. |
| 16 | Between January 19, 2017 and January 25, 2017, the Company funded two separate transactions, totaling $4,038,873, as part of a new $5,000,000 revolving trade finance facility with an Ecuadorian tuna processor and exporter. Priced at 9.50%, both transactions are set to mature on May 9, 2017 and are secured by inventory and accounts receivable. |
| 17 | The interest rate is one month Libor +10.50%. |
As of January 31, 2017 the Company had exited the following investments:
| Description | Sector | Country | Investment Type | Transaction Date | Transaction Amount | Payoff Date | Internal Rate of Return (“IRR”)1 | |||||||||
Agricultural Products Exporter I2 | Farm-Product Raw Materials | Singapore | Trade Finance | 4/23/2015 | $ | 10,000,000 | 2/29/2016 | 11.85% | ||||||||
Agricultural Supplies Distributor I | Miscellaneous Non- Durable Goods | South Africa | Trade Finance | 10/15/2014 | $ | 15,202,091 | 8/14/2015 | 13.11% | ||||||||
Agricultural Supplies Distributor II | Miscellaneous Non- Durable Goods | South Africa | Trade Finance | 10/06/2015 | $ | 8,563,423 | 6/1/2016 | 10.76% | ||||||||
Candle Distributor | Miscellaneous Manufacturing Industries | South Africa | Trade Finance | 9/2/2014 | $ | 1,400,000 | 9/16/2015 | 14.27% | ||||||||
Cement Distributor | Cement, Hydraulic | Kenya | Trade Finance | 9/23/2014 | $ | 12,000,000 | 10/15/2015 | 15.29% | ||||||||
Construction Materials Distributor | Hardware, Plumbing, and Heating Equipment | South Africa | Trade Finance | 10/9/2014 | $ | 838,118 | 4/1/2016 | 13.00% | ||||||||
Electronics Retailer | Radio, Television, Consumer Electronics, and Music Stores | Indonesia | Term Loan | 7/26/2013 | $ | 5,000,000 | 6/17/2014 | 19.59% | ||||||||
Farm Supplies Wholesaler | Miscellaneous Non- Durable Goods | South Africa | Trade Finance | 5/28/2015 | $ | 2,250,000 | 1/19/2016 | 13.14% | ||||||||
Fertilizer Distributor | Agricultural Chemicals | Zambia | Trade Finance | 7/17/2014 | $ | 3,000,000 | 11/4/2014 | 12.65% | ||||||||
Food Processor | Groceries and Related Products | Peru | Term Loan | 3/25/2014 | $ | 576,000 | 11/28/2014 | 14.01% | ||||||||
Frozen Seafood Exporter | Groceries and Related Products | Ecuador | Trade Finance | 6/17/2013 | $ | 240,484 | 5/14/2014 | 13.49% | ||||||||
Industrial Materials Distributor | Mineral and Ores | South Africa | Trade Finance | 11/20/2014 | $ | 4,030,000 | 12/15/2015 | 13.64% | ||||||||
Insulated Wire Manufacturer | Rolling, Drawing, and Extruding of Nonferrous Metals | Peru | Trade Finance | 5/2/2014 | $ | 1,991,000 | 12/2/2014 | 8.43% | ||||||||
International Tuna Exporter | Groceries and Related Products | Ecuador | Trade Finance | 7/17/2013 | $ | 1,000,000 | 10/9/2013 | 13.58% | ||||||||
Meat Processor I | Meat Products | South Africa | Trade Finance | 7/7/2014 | $ | 2,950,000 | 4/1/2016 | 14.08% | ||||||||
Meat Producer2 | Meat Products | South Africa | Trade Finance | 11/27/2015 | $ | 1,500,000 | 2/3/2016 | 14.83% | ||||||||
Rice & Bean Importer | Groceries and Related Products | South Africa | Trade Finance | 7/7/2014 | $ | 1,000,000 | 8/5/2015 | 12.97% | ||||||||
Rice Importer | Farm-Product Raw Materials | Kenya | Trade Finance | 11/6/2015 | $ | 399,653 | 5/19/2016 | 11.50% | ||||||||
Rice Producer | Cash Grains | Tanzania | Trade Finance | 1/22/2015 | $ | 3,900,000 | 4/1/2016 | 12.04% | ||||||||
Seafood Processing Company | Miscellaneous Food Preparations and Kindred Products | Ecuador | Trade Finance | 6/19/2013 | $ | 496,841 | 7/1/2013 | 13.44% | ||||||||
Textile Distributor | Apparel, Piece Goods, and Notions | South Africa | Trade Finance | 7/25/2014 | $ | 7,026,515 | 5/30/2016 | 15.81% | ||||||||
Timber Exporter | Sawmills and Planing Mills | Chile | Trade Finance | 7/3/2013 | $ | 915,000 | 6/12/2014 | 10.25% | ||||||||
Waste Management Equipment Distributor | Machinery, Equipment, and Supplies | South Africa | Trade Finance | 2/13/2015 | $ | 310,752 | 5/15/2015 | 20.19% | ||||||||
Investment Portfolio Total | $ | 84,589,877 | ||||||||||||||
Temporary Investments3 | ||||||||||||||||
| Description | Sector | Country | Investment Type | Transaction Date | Transaction Amount | Payoff Date | Internal Rate of Return (“IRR”) | |||||||||
Agricultural Products Exporter II | Farm-Product Raw Materials | Singapore | Bridge Loan | 3/21/2016 | $ | 5,000,000 | 9/14/2016 | 29.84% | ||||||||
Financial Services Provider I | Miscellaneous Business Credit Institutions | Mauritius | Promissory Note | 9/23/2014 | $ | 3,000,000 | 11/17/2014 | 15.94% | ||||||||
Financial Services Provider II | Miscellaneous Business Credit Institutions | Mauritius | Promissory Note | 3/22/2016 | $ | 15,000,000 | 9/14/2016 | 32.04% | ||||||||
Financial Services Provider III | Miscellaneous Business Credit Institutions | Mauritius | Promissory Note | 8/17/2016 | $ | 5,000,000 | 11/30/2016 | 10.53% | ||||||||
Temporary Investments Total | $ | 28,000,000 | ||||||||||||||
Investment Portfolio and Temporary Investments Total | $ | 112,589,877 | ||||||||||||||
| 1 | Given that the loan has been paid off, this investment is no longer part of the Company’s portfolio. The internal rate of return is defined as the gross average annual return earned through the life of an investment. The internal rate of return was calculated by our Advisor (unaudited) as the investment (loan advance) was made and cash was received (principal, interest and fees). |
| 2 | Impact data was not tracked for this investment. The Company does not track impact data for trade finance transactions that meet standard underwriting guidelines, but generally have the maturity of less than one year and involve borrowers with whom, at the time of funding, the Company does not expect to maintain an ongoing lending relationship or otherwise provide an open loan facility. |
| 3 | Temporary investments are defined as short-term investments that are not trade finance or term loan transactions that generally expire within one year, are intended to generate a higher yield than would be realized on cash and may be unsecured positions. The temporary investments that are unsecured positions may present a higher level of risk. |
Certain Portfolio Characteristics1
Total Assets (est.) | $ | 264,000,000 | ||
Current Loan Commitments | $ | 270,100,000 | ||
Leverage | $ | 1,635,000 | ||
Weighted Average Portfolio Loan Size | $ | 7,807,077 | ||
Weighted Average Portfolio Duration2 | 1.43 years | |||
Average Collateral Coverage Ratio | >2.0x | |||
USD Denominated | 100 | % | ||
Senior Secured First-Lien | 100 | % | ||
Countries | 19 | |||
Sectors | 27 |
Top Five Investments by Percentage3
| Company Description | Country | % of Total Assets | ||||
Power Producer | Ghana | 7.4 | % | |||
Hospitality Service Provider | Cabo Verde | 6.4 | % | |||
Clean Diesel Distributor | Peru | 5.7 | % | |||
Infrastructure and Logistics Provider | Indonesia | 5.7 | % | |||
Property Developer | Namibia | 5.7 | % | |||
| Investment Type4 | Developing Economies4 | Sector Diversification4 | ||
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| 1 | All information provided in this section, with the exception of the Total Asset (est.) figure, does not include the Company’s temporary investment commitments. |
| 2 | Weighted average duration is the average period of time before the loans in the portfolio mature or come due weighted to properly account for the difference of investment sizes within the portfolio. Duration is calculated through the average turn of trade finance transactions and the contracted amortization of term loans. |
| 3 | This represents all countries/sectors where the Company currently has a loan commitment other than through a temporary investment. Due to the revolving debt nature of trade finance facilities and the timing of funding, it is possible that certain commitments currently have a zero outstanding balance and would therefore not be represented in the country/sector allocation charts, which represents invested capital. |
| 4 | The above charts represent investment type, developing economy, and sector diversification as a percentage of the total amount outstanding of the Company’s investments other than the Company’s temporary investments. |
| 3. | The following disclosures are inserted in the section titled “Business—Investments—Investment Spotlights” on page 79 of the Prospectus: |
Property Developer
Investment Overview1
| Investment Type | Senior Secured Term Loan | |
| Structure | Term Loan Due 8/15/2021 | |
| Facility Amount2 | $15,000,000 | |
| Interest Rate | 12.50% | |
| Sector | Land Subdividers and Developers | |
| Cash Flow Coverage Ratio | >2x | |
| Environmental, Social, and Governance Screens | Compliant | |
| Primary Impact Objective | Access to Affordable Housing; Access to Financial Services; Community Development; Access to Education; Employee Ownership |
| 1 | The Investment Overview section reflects the terms of the facility as of January 31, 2017. |
| 2 | The facility amount represents the current amount that is available to the borrower under the agreement. This amount may change over time. |
Borrower Background
The Company has provided financing to a Namibia-based company that primarily engages in property development (mainly land acquisition and site development) and financial services (including micro insurance, retail banking, and education). The Company’s financing will support the efforts of the property development division and assist in the development of a roughly 4.5 square mile housing project located north of Windhoek, the capital of Namibia. The borrower initially services the land by installing the necessary infrastructure, such as water piping, sewage, storm water reticulation, electric grid connections, road pavement, and street lighting, after which the property is sold to small- andmedium-sized developers and individuals for residential and commercial construction. The borrower seeks to address the middle-income housing shortage that currently exists in Windhoek due to a steady increase in urbanization, combined with geographical hindrances. All of the borrower’s property development land acquisition meets the International Finance Corporation’s Performance Standards, as well as the borrower’s proprietary environmental management system. Additionally:
| • | Forjob-specific duties, the borrower offers training for its employees to become site foremen, supervisors and line managers, and to gain familiarity with excavation and grading operations of heavy duty machinery. |
| • | The borrower offers extensive employee benefits including an employee fund to encourage saving, transportation allowance for employees with a minimum of one year of employment, and an extensive corporate wellness program that includes free daily staff lunches, health programs, and campaigns throughout the year. |
| • | To complement the holding company’s online education institution, which is the largest distance-learning education program in Namibia, the borrower is planning to open a vocational training center where members of the public, in addition to the borrower’s staff, can obtain training and accreditation in all trades concerning brick & mortar, plastering, concrete, electrical, and plumbing work. |
| • | The holding company’s insurance branch provides insurance products, such as legal insurance, funeral cost coverage, life coverage, and income protection, to individuals previously excluded from traditional insurance. |