Borrower Overview
 

TriLinc has provided financing to a Mauritius-based vanilla exporter, founded in 2013, that sources processed, cured, and packaged vanilla beans for export from smallholder farmers in Madagascar, the world’s largest vanilla producer. The borrower is registered with the UN Global Compact and the Flavor & Extract Manufacturers Association and holds certifications with Fair Trade International and the Rainforest Alliance. Through their Bourbon Ethics Program, the borrower’s Madagascan division works with smallholder vanilla producers and co-operatives to organize sustainable production that is focused on compliance with best practices for harvesting, processing, and preparation. In return, farmers participate in various local social welfare programs offered throughout the community. It is anticipated that TriLinc’s financing will provide the company’s smallholder farmer suppliers with access to new international markets and customers, including large U.S.-based conglomerates such as McCormick & Company.

Market Overview

Mauritius is classified as an upper middle-income country by the World Bank.¹ Between 2011 and 2015, annual GDP growth rates averaged approximately 3.5%.¹

Mauritius’ exports are focused on clothing and textiles, sugar, cut flowers, molasses, fish, and primates (for research).² Sugarcane is grown on about 90% of the cultivated land area and accounts for 15% of export earnings.² Conversely, the country’s top imports are primarily focused in manufactured goods, capital equipment, and foodstuffs.²

Mauritius meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.³ In 2016, it ranked 1st across the Sub-Saharan African region on the World Bank’s Ease of Doing Business index.⁴ With a GDP of $11.5 billion, the country’s relatively well developed financial sector, efficient goods market, and quality infrastructure development have led the country to benefit from the roughly $41 billion in foreign direct investment that flowed into the region in 2015.⁵ Sub-Saharan Africa had estimated regional GDP growth of 3.0% in 2015,⁶ and is projected to strengthen to 4.4% by 2018.⁶

Additional Sustainability & Impact Highlights

• As a Rainforest Alliance Certified producer, the borrower meets the standards of the Sustainable Agriculture Network, which focus on conserving soil quality and preventing erosion, reducing chemical use, protecting wildlife, and ensuring the well-being of workers and their families by facilitating access to education and healthcare.
• The borrower supports a local NGO which aids smallholder vanilla producers in improving their quality of life through various education, health, and environmental initiatives designed to fight school absenteeism, malnutrition, and environmental degradation, respectively.

¹The World Bank, World Development Indicators Database, Mauritius, 2016. ²CIA, The World Factbook, 2016: Mauritius. ³There is no assurance that our investment in this company or this market will be successful. ⁴The World Bank, Doing Business 2016, Measuring Regulatory Quality and Efficiency, 2015. ⁵The World Bank, Data, Sub-Saharan Africa, 2016. ⁶The World Bank, Global Economic Prospects, June 2016.

The above information is as of the initial date of investment: July 28, 2017.

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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