TriLinc Global Impact Fund has recently approved $2.8m in two trade finance facilities to companies in South Africa.

TriLinc is an impact investing fund that provides growth-stage loans and trade finance to established small and medium enterprises (SMEs) in developing economies where access to affordable capital is significantly limited.

Impact investing is defined as investing with the specific objective of achieving a competitive financial return as well as creating positive, measurable impact on people and communities across the globe.

On October 9 and October 10, 2014, TriLinc funded $176,633 and $167,607, respectively, as part of a trade finance transaction of up to $550,000 at a fixed interest rate of 12.75% to a South African construction materials supplier engaged in importing and distributing plastic piping and fittings for commercial and residential infrastructure purposes.

The transaction, set to mature on April 9, 2015, is supported by specific piping and fitting inventory.

The borrower anticipates that the financing will enable it to increase job creation.

On October 23, 2014, TriLinc funded a $2.5m trade finance transaction at a rate of 17.5% to a South African mine remediation company engaged in the remediation of a recently shuttered zinc mine.

The borrower’s activities include the creation of a rehabilitation fund, dismantling and disposal of mining equipment, removal and sale of tailings, and monitoring of ground water.

The transaction, set to mature on October 1, 2015, is supported by inventory and receivables.

In addition to recovering commercial-use materials from the soil, the remediation activities mitigate the environmental effects of the former mine.

The borrower anticipates that the financing will enable it to generate employment opportunities.

Gloria Nelund, TriLinc CEO, said: “TriLinc’s financing to expansion-stage, progressive SMEs in developing economies reflects our belief that providing capital to promising yet under-funded companies contributes to the global sustainable economy.”

“We help SMEs that are committed to job creation and social and environmental impact to grow, and in doing so they foster vibrant communities around the world,” she added.