IMPACT REPORTING

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 92%
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 79%
Top 5 Borrower Impact Objectives:
1 Job Creation
2 Agricultural Productivity & Food Security
3 Capacity-Building
4 Equality & Empowerment
5 Wage Increase
Top 5 Environmental and Social Practices:
1 Charitable Donations
2 Fair Hiring and Recruiting
3 Maternity / Paternity Leave
4 Energy Savings
5 Waste Reduction
Integrated Steel Producer - Zambia1
Investment Type: Senior Secured Trade Finance
Structure: Purchase and Repurchase Loan Facility
Loan Commitment Amount2: $6,000,000
Interest Rate3: 13.00%
Sector: Steel Works, Blast Furnaces, and
Rolling and Finishing Mills
Collateral Coverage Ratio4: ≥ 20X
Primary Impact Objective: Job Creation

Over the past ten years, Zambia has experienced exponential growth as GDP has increased approximately 225% from $8.3 billion in 2005 to $27.1 billion in 2014.5 As a result, Zambia is recognized as one of the world’s fastest growing economies and within the top 10 most competitive economies in the greater Sub-Saharan Africa region.6 However, Zambia’s full economic development potential has yet to be realized as facilitating factors, such as access to finance and adequate supply of infrastructure, have limited private company growth.

In an effort to help alleviate these economic development constraints and support a burgeoning Zambian private sector, TriLinc extended a $6,000,000 trade financing facility in August 2015 to a wholly Zambian-owned steel producer engaged in the manufacturing of finished steel products in an integrated, sustainable and environmentally conscious way. Established in 1989, the borrower has long been a partner in Zambia’s socio-economic development and is the country’s first integrated steel and iron manufacturer who has built a reputation for delivering cost efficient, quality products to local infrastructure-related industries that have traditionally relied upon expensive steel imports. The borrower estimates Zambian steel demand to be approximately one million tons per year and is currently expanding its operations to meet the growing needs of the country’s construction, manufacturing, engineering, and mining industries.

In support of its strategic growth objectives, the borrower is utilizing TriLinc’s financing as a source of short-term capital to generate liquidity, purchase additional raw material, and support additional production capacity. Recognized in Zambia as a leading employer in the region, the borrower expects to quadruple its employee base once its plant reaches full manufacturing capacity. Also, in addition to providing a valuable physical infrastructure input, the borrower assumes a leadership role in stewarding the country’s social infrastructure by actively managing the environmental and social impact of its operations, supporting local primary and secondary schools, and drilling water boreholes to improve access to water for local communities.

Past performance is no guarantee of future results. This borrower and the information presented represents an actual transaction in TriLinc Global Impact Fund.
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) The World Bank. The World Development Indicators. 2015.
6) World Economic Forum. The Global Competitiveness Report 2015-2016.
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SC Distributors, LLC (member FINRA/SIPC) is the affiliated dealer manager for the TriLinc Global Impact Fund offering.