Fruit & Nut Distributor

Borrower Overview
 

TriLinc has provided financing to a nut, dried fruit and seed processor and distributor located in South Africa. Incorporated in 2011, the borrower company’s two key principals have nearly 40 years of combined experience in the sector. The company’s customers include large, established grocery and supermarket chains including Fruit and Veg City. Through the financing and logistical expertise provided by TriLinc’s sub-advisor, the borrower has been able to grow its sourcing network around the globe. It is anticipated that TriLinc’s financing will allow the borrower to continue to improve its capacity and increase its number of employees. The borrower has established a consistent repayment track record with the sub-advisor and the transaction is part of a purchase and repurchase agreement that is secured by dried fruit and nut inventory, as well as receivables. According to the borrower, all production is overseen by a food technologist and monitored by a quality control team following the guidelines of Good Manufacturing Practices (GMP). The borrower undergoes regular independent audit tests that include ISO 17025 accredited microbiological testing methods. The borrower prides itself on bringing the nutritional and health benefits of nuts, seeds and dried fruits to consumers.

 


Market Overview

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 2013, it ranked 41st in the world and third across the region on the World Bank’s Ease of Doing Business index.5 As the second largest economy in Sub-Saharan Africa, the country benefitted from the $32 billion in direct foreign investment that was estimated to have flowed through the region in 2013.6 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 2014.6 looking ahead in 2015 and 2016, overall regional GDP growth is projected to strengthen to 5.1%.6


Additional Sustainability and Impact Highlights

  • The borrower targets job creation, equal opportunity employment through South Africa’s Broad-Based Black Economic Empowerment program, and health improvement as major objectives of its business.
  • The borrower complies with GMP as regulated by the South African Medicines Control Council (MCC), which helps ensure consistent, high quality products for consumers.
  • The borrower maintains a modern manufacturing facility that offers a safe work environment for its employees.

1World Bank, Doing Business 2014, Economy Profile: South Africa. 2World 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 2014, Understanding Regulations for Small and Medium-Size Enterprises. 6The World Bank, Global Economic Prospects, 2014.

The above information is as of the initial date of investment: July 7, 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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