Trustco Finance, a subsidiary of Trustco Group Holdings Limited has secured a US$20 million (approximately N$345 million) loan from Deutsche Investitions Und Entwicklungsgesellschaft, a German development finance institution.
The loan approval is, however, subject to a final agreement currently being drafted.
The bulk of the facility will be used to provide student financing, offered by Trustco Finance, as well as enhancing the educational facilities offered by the Institute for Open Learning (Pty) Ltd (“IOL”), while 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.
“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,” Trustco’s Head of Education, Ilana Calitz said.
The company said the approval is in line with Trustco’s previously plan to redesign the funding structure of the business to ensure access to funding to meet the large demand from Namibian students.
“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.”
Since 2012 KFW/DEG has advanced more than N$550 Million to Trustco in debt.
Trustco is a dual listed diversified financial services group majority owned by Quinton van Rooyen, which has an interest in insurance and investments; resources; and banking and finance, and owns companies such as Trustco Bank, Meya Mining in Sierra Leone, the Northern Namibia Development Company, and Morse Investments.
The company is currently in the process of retrenching employees as part of cost cutting measures.
Trustco employees have been offered one month’s full remuneration as notice pay for work done for the final month of employment, calculated until last day of service and one week’s remuneration for each year of continuous service completed.
Trustco shall pay any accrued but unused accumulated leave days; unvested shares of the employee will vest immediately on the date of termination in the name of the employee.