Borrower Overview
TriLinc has provided financing to a sustainable shrimp processor and exporter located in Guayaquil, Ecuador. Established in 2009, the company is engaged in the purchasing, processing, freezing, and packaging of sustainably-farmed shrimp sourced from local suppliers licensed by Ecuador’s National Fisheries Institue (“INP”), ensuring compliance with national conservation standards and practices. The company’s processing facility holds an Environmental License from Guayaquil Municipality that affirms their commitment to sustainable operations through the completion of an environmental impact study and the establishment of an Environmental Management Plan. The company receives a daily average volume of over 200,000 pounds of farm-raised white shrimp during high tide seasons, which it processes and sells in various size and packaging options tailored to over 100 customers throughout Europe, China, and the United States. The company anticipates that TriLinc’s financing will improve its competitiveness in the global marketplace while growing its employee base, which is composed of 50% women, in a city with one of the highest unemployment rates in the country.
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Market Overview
Ecuador is classified as an upper middle-income country by the World Bank.1 Between 2011 and 2015, annual GDP growth rates averaged approximately 4.4%.1 Ecuador’s adoption of the U.S. dollar as its official legal tender in March 2007 fueled this growth and enhanced trade flows. Today, Ecuador is one of three Latin American countries that has fully “dollarized” their economy.3 Ecuador’s main exports are concentrated in petroleum, bananas, cut flowers, shrimp, cacao, coffee, wood, and fish.2 Conversely, the country’s main imports are focused in industrial materials, fuels and lubricants, and nondurable consumer goods.2
Ecuador meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.4 As the eighth largest economy in the Latin America and Caribbean region5 with a GDP of $100.9 billion, Ecuador enjoys stable macroeconomic conditions and relatively well-developed infrastructure, which have led the country to benefit from the $158 billion in net foreign direct investment that was estimated to have flowed into the region in 2015.6 Between 2011 and 2015, the annual GDP growth rate for the region has averaged approximately 2.0% and is forecasted at 2.1% in 2018.7
Additional Sustainability & Impact Highlights
- The borrower has promoted many energy saving initiatives throughout their production facilities, including using state-of-the-art, cost-efficient cooling and freezing equipment to preserve the quality of their product and reduce their environmental footprint.
- In addition to onsite health services, meal provisions and daily transportation, the company offers its employees competitive wages, including an annual bonus and child support stipend.
1The World Bank, World Development Indicators Database, Ecuador, 2016. 2CIA, The World Factbook, 2016: Ecuador. 3Investopedia, Countries that Use the U.S Dollar, 2015. 4There is no assurance that our investment in this company or this market will be successful. 5The World Bank, World Development Indicators Database, 2016. 6The World Bank, Data, Latin America and the Caribbean, 2016. 7The World Bank, Global Economic Prospects, June 2016.
The above information is as of the initial date of investment: June 29, 2016.
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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