IMPACT REPORTING


Impactful Investments: Sugar Producer


Brazil has the seventh largest economy in the world, but economic productivity and prosperity vary widely throughout the country.1 Pernambuco State in northeast Brazil is one of the most marginalized regions, with a poverty rate that is double the national average.2 Almost 90% of Brazil’s sugarcane production occurs in its south-central region, but in 1958 a sugar producer commenced milling sugar in Pernambuco, and today it manages one of the most modern mills in the state.

In 2009, this sugar producer began receiving financing from the Brazilian representatives of TriLinc Global Impact Fund’s sub-advisor. Building on this relationship, and with a deep appreciation for the outsized social and economic impact of the borrower, TriLinc extended a loan to the borrower in 2013 to support crop cultivation and improve its milling operations.

The borrower’s activities generate stable employment for workers at wages that are higher than Pernambuco’s average local wage - which is among Brazil’s lowest.3 In addition to creating much-needed jobs, the borrower provides health, safety and specialization training to all employees. It also offers more than 250 rent-free houses and free on-site medical services to employees and their families. The borrower is equally committed to the broader community where it operates. It pays the rent and building maintenance costs for a local school and contributes to a nonprofit organization that offers health care to the community of Pernambuco.

The borrower actively engages in minimizing its environmental impact. Sugarcane processing byproducts include ethanol, a clean-burning, renewable fuel, and bagasse, a fibrous waste. The company uses the bagasse to generate electricity, with the capacity to create 40,000 megawatts per year. In addition, the borrower collaborates with IBAMA (Brazilian Institute of Environment and Natural Resources) to reforest the region and has planted 19.83 hectares (the equivalent of 49 acres) of trees to date.

 



Past performance is no guarantee of future results. This borrower and the information presented represents an actual transaction in TriLinc Global Impact Fund.
1 World Bank, http://www.worldbank.org/en/country/brazil/overview#1
2 World Bank, http://www.worldbank.org/en/news/press-release/2013/06/25/
3 Instituto Brasileiro de Geografia e Estatística, www.ibge.gov.br
4 There is no assurance that our investment in the borrower or this market will be successful or will have the desired impact.
5 Note, this is not a measure of TriLinc’s investment performance nor is it necessarily indicative of distributions that TriLinc may provide to investors.
6 The collateral coverage ratio is the amount of collateral the borrower must maintain in relation to the total amount outstanding on the facility.

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SC Distributors, LLC (member FINRA/SIPC) is the affiliated dealer manager for the TriLinc Global Impact Fund offering.