Trustco has informed shareholders that DEG, a development finance institution based in the Federal Republic of Germany, in association with the German Development agency, KfW Group, approved a United States Dollar denominated term loan facility to Trustco Finance. The latter, which is a subsidiary of Trustco Group Holdings Limited, will therefore receive a loan of US$20 million, which equates to approximately N$345 million at current exchange rates.
“In keeping with Trustco’s commitment to the welfare of all Namibians, and as a strategic response to the Covid-19 pandemic, in partnership with DEG, the bulk of the facility will be used to provide student financing, as offered by Trustco Finance , as well as enhancing the educational facilities offered by the Institute for Open Learning. Significant funding will also be made available to existing students to restructure and refinance their existing obligations as part of the group’s Covid-19 relief measures,” read a statement from Trustco.
The statement continued that in these extraordinarily unsettling economic times, one of the ultimate objectives of the DEG facility is to enhance job security within Trustco’s educational businesses.
According to Trustco’s Head of Education, Ilana Calitz: “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.”
The loan 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 statement added that the loan 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 to Trustco. The latest loan approval is however still subject to a final agreement that is currently being drafted by the relevant parties.
2020-06-05 09:12:23 | 3 months ago