TriLinc has provided financing to a consumer goods producer and distributor located in South Africa. Incorporated in 1993, the borrower began operations as a small-scale family-owned bottler of household items such as dish washing liquids and fabric softeners. Today, the borrower has developed a global network of raw material suppliers and a market reputation as a leading candle producer and distributor to supermarkets, wholesalers, and independent stores including Massmart, Shoprite, and Pick n Pay. The borrower is currently in the process of leveraging its brand to expand into other finished consumer retail goods, including cosmetics and cleaning supplies. It is anticipated that TriLinc’s financing will support the borrower’s product development efforts and create new employment opportunities. TriLinc’s financing is part of a purchase and repurchase trade finance facility that is secured by product inventory and receivables.
South Africa is classified as an upper middle income country by the World Bank.1 Between 2010 and 2013, GDP growth rates averaged approximately 2.8%.2 Major exports include gold, diamonds and platinum (world’s largest producer).3
South Africa meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.4 In 2014, it ranked 43rd in the world and second across the region on the World Bank’s Ease of Doing Business index.5 As the second largest economy in Sub-Saharan Africa,6 the country benefitted from the $32 billion in direct foreign investment that was estimated to have flowed through the region in 2013.7 Robust domestic demand across Sub- Saharan Africa has helped spur real GDP growth of up to 4.7% in 2013, and is expected to remain stable at 4.7% in 2014.7 Looking ahead to 2015 and 2016, overall regional GDP growth is projected to strengthen to 5.1%.7
Additional Sustainability & Impact Highlights
- The borrower minimizes its environmental impact by continuously replacing factory machine motors and conveyer belts with the latest and most energy efficient technology.
- The borrower reduces industrial waste by reintegrating and recycling wax by-product trimmings as raw material into the production process.
- The borrower promotes employee health and well-being by providing financial support for regular staff medical exams and physical fitness activities.
- The borrower’s customer base includes independent stores that serve individuals and households in informal urban settlements with limited access to the country’s electricity infrastructure.
1The World Bank, Doing Business 2015, Economy Profile: South Africa. 2The World Bank, World Development Indicators Database, 2014. 3CIA, The World Factbook, 2014: South Africa. 4There is no assurance that our investment in this company or this market will be successful. 5The World Bank, Doing Business 2015, Economy Rankings, Sub-Saharan Africa. 6The World Bank: GDP Ranking; 2014. 7The World Bank, Global Economic Prospects, 2014.
The above information is as of the initial date of investment: August 29, 2014.
This borrower is no longer in TriLinc’s portfolio.
TriLinc originally performed an SDG mapping exercise in December 2017 to map all of our borrower companies, both current and exited from our portfolios, to specific SDGs based off of business activity. TriLinc’s official SDG alignment methodology was not finalized until June 30, 2018. For borrowers that had exited TriLinc’s portfolios prior to this time period, the selected SDGs for these borrower are a reflection of what TriLinc believes would have been the SDG alignment if 1) the SDGs had been in effect and 2) TriLinc had integrated the SDG alignment while the company was in the portfolio. The SDG mapping presented does not include input from Investment Partners or borrower companies given that the companies were no longer in the portfolio when the alignment was finalized.
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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