Borrower Overview
TriLinc has provided financing to a beef exporter located in Argentina. Established in 1950, the company produces and processes various kinds of high quality meat products including matured and frozen meats, sausages, hams, and other cooked meats. 99% of the company’s products are sourced from domestic suppliers, processed within the company’s three manufacturing plants, and stored in a cold storage unit that has the capacity to hold 1,600 tons of frozen products. The company’s facilities are ISO 14001 Environmental Management System certified. The company provides informational and technical support to its local cattle suppliers to inform them on better feeding practices and cattle nutrition to promote beef quality. TriLinc’s financing will support the company’s ongoing growth efforts as it expands into niche markets to increase sales volume and take advantage of its current production capacity.
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Market Overview
In 2014, Argentina was classified as an upper-middle income country by the World Bank.1 Between 2010 and 2014, annual GDP growth rates averaged approximately 4.4%.2 Argentina’s main exports have traditionally been soybeans and derivatives, petroleum and gas, vehicles, corn, and wheat. 7 Conversely, imports have been focused in machinery, motor vehicles, petroleum and natural gas, organic chemicals, and plastics.3
Argentina meets TriLinc’s country standards for its performance across relevant growth, and access metrics but not all stability metrics.4 Due to our Investment Partner’s successful historical experience in-country with financing exports, Argentina has been approved on a conditional basis for this Investment Partner, specifically for export financing where the buyer is typically a developed market company or a large conglomerate, and for borrowers with whom our Investment Partner has worked with in the past. As the third largest economy in Latin America, the country benefitted from the $178 billion in net foreign direct investment that was estimated to have flowed into the region in 2014.5 Between 2010 and 2014, annual GDP growth rates for the region have averaged approximately 3.6% and are forecasted to reach approximately 2.8% in 2017.6
Additional Sustainability & Impact Highlights
- The company is OHSAS 18001 Occupational Health & Safety certified and has implemented fair hiring and recruiting, career advancement, and compensation policies in addition to extending paternal leave to its employees.
- The company coordinates with the local municipality to improve neighborhood infrastructure and participate in local reforestation projects. Additionally, the company supports a Junior Achievement Project that pays for primary and secondary educational programs, as dictated by the company’s employees, covering topics such as valuing environmental issues.
1The World Bank, Data – New Country Classifications, 2015. 2The World Bank, World Development Indicators Database, 2015. 3CIA, The World Factbook, 2015: Argentina. 4There is no assurance that TriLinc’s investment in this company or this market will be successful. 5The World Bank, World Development Indicators Database, 2015. 6The World Bank, Global Economic Prospects, 2015.
The above information is as of the initial date of investment: June 4, 2014.
RISK FACTORS
There is no guarantee that TriLinc’s investment strategy will be successful. Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion. TriLinc selects investments and conducts operations on behalf of its clients, and will face conflicts of interest. Investment with TriLinc is not suitable for all investors. Securities Offered through CommonGood Securities, LLC, a member of FINRA and SIPC.
An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.
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