TriLinc has provided financing to a seafood processing and packaging company located on the Pacific coast of Ecuador and focused on the sale and export of frozen tuna and shrimp. In addition to helping the company purchase, process and package frozen tuna for export to customers around the world, the borrower expects that financing from TriLinc Global Impact Fund will allow it to create more jobs and expand its number of employees in the coming years, the majority of whom are female. The company has been in business since 1993 and a client of TriLinc’s sub-advisor since 2005. The company has the capacity to process over 60 tons of seafood per day and TriLinc’s thorough due diligence and underwriting has uncovered strong revenue and profitability growth in recent years. Accounts receivable from international buyers, as well as inventory, provide collateral that helps support the facility. Frequent inventory reports are issued by the local office of a major independent collateral manager.
Ecuador is the eighth largest economy in Latin America and is classified as a middle income country by the World Bank.1 Real GDP growth over the last 5 years (2008-2012) has averaged more than 4.5%.1 Since 2000 (2000-2012), real GDP growth has averaged nearly 4.3%.1 Major export sectors include bananas, shrimp, fish, petroleum, cacao, coffee, and wood.
Ecuador meets TriLinc’s country standards for its performance across relevant growth, stability and access metrics.2 In particular, Ecuador scores particularly well versus its regional peers on a series of growth indicators, with what we believe are low levels of public debt and moderate inflation in addition to strong historical growth.
Additional Sustainability & Impact Highlights
- In Ecuador, more than half of small and medium-sized enterprises (SMEs) report limited access to sufficient capital.3
- The majority of the borrower’s employees are female (61%), as compared to the Latin American &Caribbean average of approximately 35%.4
- The borrower holds several international certifications for the company’s environmental management system and food safety standards, as well as with inspection certificates from the Ministry of Labor and Ministry of Environment.
1World Bank, World Development Indicators Databank, June 2013. 2There is no assurance that our investment in this company or this market will be successful. 3World Bank Group, “What have we learned from the Enterprise Surveys regarding access to finance by SMEs,” Feb 2012. 4IFC, IFC Jobs Study, Jan 2013.
The above information is as of the initial date of investment: June 19, 2013.
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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