IMPACT REPORTING


As of March 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 86%
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 92%
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 Energy Savings
4 Fair Career Advancement
5 Charitable Donations
Case Study: Property Developer - Namibia1
Investment Type: Senior Secured Term Loan
Structure: Term Loan Due 8/15/2021
Loan Commitment Amount2: $15,000,000
Interest Rate3: 12.50%
Sector: Land Subdividers and Developers
Collateral Coverage Ratio4: >2.0x
Impact Objective(s): Access to Affordable Housing, Access to Financial Services, Community Development, Access to Education, Employee Ownership

With a 2015 GDP of $11.5 billion and population of 2.5 million5, Namibia ranks ninth across the Sub-Saharan African region on the World Bank’s Ease of Doing Business index6. Between 2010 and 2015, annual GDP growth rates averaged approximately 5.6%,5 mainly driven by metal exports7. Namibia is experiencing rapid rural to urban migration, with an average urban population growth rate of 4.5% per year, driving the demand for serviced land and urban infrastructure development8.

Recognizing the shortage of affordable housing near Namibia’s cities, TriLinc extended a $15,000,000 senior secured four-and-a-half year term loan facility 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). TriLinc’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- and medium-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 company’s property development land acquisition meets the International Finance Corporation’s Performance Standards, as well as the company’s proprietary environmental management system.

To complement the holding company’s online education institution, which is the largest distance-learning education program in Namibia, the company is planning to open a vocational training center where members of the public, in addition to the company’s staff, can obtain training and accreditation in all trades concerning brick & mortar, plastering, concrete, electrical, and plumbing work. Additionally, 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.

Past performance is no guarantee of future results. The impact data above in the Impact Overview section reflects data collected as of March 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 March 31, 2017. 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 cash flow coverage ratio is the ratio of projected total cash available at the end of the current year to the annual in interest and principal payments due on outstanding debt. 5) World Bank, World Development Indicators Database, Namibia, 2016. 6) The World Bank, Doing Business, 2017. 7) CIA World Factbook, Namibia, 2016. 8) African Economic Outlook, Namibia, 2016.