Alexander Forbes has N$14m outstanding on loan

Alexander Forbes Namibia Holdings Proprietary Limited has an outstanding principal of N$14 million on its of N$28 million loan it got in December 2020 for the refurbishment of the Namibia head office.

The Senior Debt Facility (SDF) is an unsecured five-year term loan facility. Alexander Forbes Financial Services Namibia Proprietary Limited has provided a guarantee to the lender for this obligation. The outstanding principal of N$14 million and outstanding interest are payable at maturity, the company said.

In December 2020 Alexander Forbes Namibia obtained a senior debt facility (SDF) of N$28 million dollars to finance the capital expenditure on the refurbishment of the Namibia head office.

The company said the SDF bears interest at the Namibian prime lending rate plus 1,20% margin per annum compounded monthly. The facility is repayable over five years in ten equal instalments of principal (N$1,4 million) and interest, both paid semi-annually in arrears.

For the term loan facility, the group is required to maintain an interest cover of not less than 3,5 times and a senior debt net leverage ratio greater than 2,75 times, whereas AF Namibia Holdings is required to maintain a debt service cover ratio of less than 1,5 times and cash coverage above 1,2 times for the SDF. Alexander Forbes Namibia is owned by 75% by Alexender Forbes South Africa.

Alexander Forbes reported solid financial performance delivering growth in line with the strategy of the group. The group delivered strong revenue growth in an uncertain economic environment, reporting a 12% increase in operating income to R3,9 billion for the twelve months ended 31 March, 2024.

The growth in revenue is a result of the deliberate execution of its strategy, new business wins, the implementation of acquisitions and reflects the positive market performance in the current year.

Profit from operations (before non-trading and capital items) increased 2% year on year to R801 million. Cash generated from continuing operations remains strong at R1 billion. Headline earnings per share from total operations increased 29% to 61,5 cents per share.

Chief executive officer, Dawie de Villiers, commented: “We set out to transform our business and I am pleased with our disciplined execution, consistent delivery over time, capacity building and progress towards our ambition as a group. Alexender Forbes turns 90 in 2025 and I am looking forward to making the year ahead truly memorable as we continue to serve our purpose by making a positive impact for all stakeholders.”

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