Trustco borrows to secure jobs
Financial services group believes its distance education model is the future
Augetto Graig
Trustco has borrowed US$20 million (N$338.6 million) from Deutsche Investitions und Entwicklungsgesellschaft (DEG), a development finance institution associated with the KfW Group based in Germany.
The term loan facility has been approved to Trustco Finance, a subsidiary of Trustco Group Holdings Limited, according to the group.
The information was provided to the Stock Exchange News Service administered by the Johannesburg Stock Exchange (JSE), by Trustco company secretary Komada Holdings.
Trustco is listed on both the Namibian Stock Exchange and the JSE.
Heleen Steyn, then acting company secretary, informed shareholders that the Trustco board of directors appointed Komada Holdings as company secretary with effect from 1 March 2020, on 24 February. Komada Holdings forms part of the Shared Services Segment within the Trustco group of companies and serves as company secretary to all of Trustco's subsidiaries, she elaborated then.
Student financing, educational facilities
Komada said Trustco’s strategic response to the Covid-19 pandemic, in partnership with DEG, is to use the bulk of the facility to provide student financing, as offered by Trustco Finance, as well as enhance the educational facilities offered by the Institute for Open Learning (IOL), another Trustco subsidiary.
Significant funding will also be made available to existing students to restructure and refinance their existing obligations as part of the group’s relief measures, the group statement read.
One of the ultimate objectives of the DEG facility is to enhance job security within Trustco’s educational businesses, said the statement.
Trustco’s head of education, Ilana Calitz, said: "IOL welcomes fresh funding for Namibian education, especially as the distance education model has proven to be in high demand during the current pandemic. I am confident that a new hybrid model of education will emerge and distance education will become an integral part of the educational industry."
Enhanced capital structure
The approved facility significantly enhances Trustco’s capital structure and liquidity, and provides the company with ample resources to service Namibian borrowers in a time of great need. The approval is in line with Trustco’s previously communicated plan to redesign the funding structure of the business to ensure access to funding to meet the large demand from Namibian students.
Since 2012, KFW/DEG has advanced more than N$550 million in debt to Trustco.
The approval is subject to a final agreement that is currently being drafted, according to Komada.
Trustco has borrowed US$20 million (N$338.6 million) from Deutsche Investitions und Entwicklungsgesellschaft (DEG), a development finance institution associated with the KfW Group based in Germany.
The term loan facility has been approved to Trustco Finance, a subsidiary of Trustco Group Holdings Limited, according to the group.
The information was provided to the Stock Exchange News Service administered by the Johannesburg Stock Exchange (JSE), by Trustco company secretary Komada Holdings.
Trustco is listed on both the Namibian Stock Exchange and the JSE.
Heleen Steyn, then acting company secretary, informed shareholders that the Trustco board of directors appointed Komada Holdings as company secretary with effect from 1 March 2020, on 24 February. Komada Holdings forms part of the Shared Services Segment within the Trustco group of companies and serves as company secretary to all of Trustco's subsidiaries, she elaborated then.
Student financing, educational facilities
Komada said Trustco’s strategic response to the Covid-19 pandemic, in partnership with DEG, is to use the bulk of the facility to provide student financing, as offered by Trustco Finance, as well as enhance the educational facilities offered by the Institute for Open Learning (IOL), another Trustco subsidiary.
Significant funding will also be made available to existing students to restructure and refinance their existing obligations as part of the group’s relief measures, the group statement read.
One of the ultimate objectives of the DEG facility is to enhance job security within Trustco’s educational businesses, said the statement.
Trustco’s head of education, Ilana Calitz, said: "IOL welcomes fresh funding for Namibian education, especially as the distance education model has proven to be in high demand during the current pandemic. I am confident that a new hybrid model of education will emerge and distance education will become an integral part of the educational industry."
Enhanced capital structure
The approved facility significantly enhances Trustco’s capital structure and liquidity, and provides the company with ample resources to service Namibian borrowers in a time of great need. The approval is in line with Trustco’s previously communicated plan to redesign the funding structure of the business to ensure access to funding to meet the large demand from Namibian students.
Since 2012, KFW/DEG has advanced more than N$550 million in debt to Trustco.
The approval is subject to a final agreement that is currently being drafted, according to Komada.
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