IMPACT REPORTING


As of January 31, 2017

Impact Overview
Percentage of TriLinc Borrowers that:
Comply with local environmental, labor, health, safety and business laws, standards and regulations 100%
Demonstrate their positive impact on the community through community service and/or community donations 85%
Commit to working towards implementing international environmental and health and safety best practices 100%
Implement environmentally sustainable practices, including energy savings, waste reduction and/or water conservation 94%
Top 5 Borrower Impact Objectives:
1 Job Creation
2 Wage Increase
3 Agricultural Productivity
4 Capacity-Building
5 Productivity & Competitiveness Improvement
Top 5 Environmental and Social Practices:
1 Maternity / Paternity Leave
2 Fair Hiring and Recruiting
3 Charitable Donations
4 Energy Savings
5 Fair Career Advancement
Case Study: Shrimp Exporter - Ivorfield1
Investment Type: Senior Secured Trade Finance
Structure: Revolving Facility
Loan Commitment Amount2: $6,000,000
Interest Rate3: 9.25%
Sector: Fresh or Frozen Packaged Fish and Seafood
Collateral Coverage Ratio4: ≥ 5.88X
Impact Objective(s): Job Creation; Wage Increase

With a 2015 GDP of $100.2 billion and population of 16.14 million, Ecuador is the eighth largest economy in Latin America5 and one of only three countries on the continent that has fully dollarized their economy.6 Ecuador’s dollarization has decreased transaction costs with its U.S. trading partners and promoted long-term investment by stabilizing exchange rate risk.7 Between 2011 and 2015, annual GDP growth rates averaged approximately 4.49%5, mainly driven by petroleum, fishing, and select crop and processed food exports.8

Recognizing the aquaculture industry’s importance to Ecuador’s global competitiveness, in June 2016 TriLinc extended up to a $5,500,000 senior secured revolving trade finance facility to the seventh largest shrimp exporter, located in Guayaquil, the largest city in Ecuador. Established in 2009, the company is engaged in the purchasing, processing, freezing, and packaging of shrimp sourced from local suppliers that are licensed by Ecuador’s National Fisheries Institute, ensuring compliance with national conservation standards and practices. The company’s processing facility holds an Environmental License from Guayaquil Municipality that affirms their commitment to sustainable operations through the completion of an environmental impact study and the establishment of an Environmental Management Plan.

The company receives a daily average volume of 240,000 pounds of farm-raised white shrimp during high tide seasons, which it processes and sells in various size and packaging options tailored to over 100 customers throughout Europe, China, and the United States. The company anticipates that TriLinc’s financing will improve its competitiveness in the global marketplace while growing its employee base, which is composed of 50% women, in a city with one of the highest unemployment rates in the country. The company offers its employees competitive wages, including an annual bonus and child support stipend, in addition to onsite health services, meal provisions, and daily transportation.

The borrower has promoted many energy saving initiatives throughout their production facilities, including using state-of-the-art, cost-efficient cooling and freezing equipment to preserve the quality of their product and reduce their environmental footprint. With an extensive quality control system in place at both the local supplier and production levels, the company continues to supply high-quality shrimp products into the international marketplace.

Past performance is no guarantee of future results. The impact data above in the Impact Overview section reflects data collected as of January 31, 2017 and is subject to change/rounding. The borrower information presented in the Impact Investment Case Study represents an actual transaction in TriLinc Global Impact Fund as of January 31, 2017. The Impact Investment Case Study is not necessarily representative of other investments made by TriLinc Global Impact Fund. All information provided by TriLinc Advisors, LLC.
1) There is no assurance that our investment in the borrower or this market will be successful or will have the desired impact.
2)The current loan commitment amount represents the current amount that is available to the borrower under the agreement. This amount may change over time.
3) Note, this is not a measure of TriLinc’s investment performance nor is it necessarily indicative of distributions that TriLinc may provide to investors.
4) The collateral coverage ratio is the amount of collateral the borrower must maintain in relation to the total amount outstanding on the facility.
5) World Bank, World Development Indicators Database, Ecuador, 2016.
6) Investopedia, Countries that Use the U.S Dollar, 2015.
7) Council on Hemispheric Affairs, Examining the Effects of Dollarization on Ecuador, 2016.
8) CIA World Factbook, Ecuador, 2016.