Namibia: Trustco in Bid to Raise N$1 Billion Capital
Diversified financial services group Trustco has embarked on a roadshow aimed at raising N$1 billion in capital to be used in the further expansion of operations in the region and across Africa.
Group MD Quinton van Rooyen was last week upbeat about the company’s chances of raising the N$1 billion on the capital markets which is being underwritten by the International Finance Corporation.
He said: “Next week (this week) we start on a road show to raise N$1 billion for our expansion programme into South Africa and to the rest of Africa.
“It will be our first attempt at the capital markets but what is heartening for us is that the International Finance Corporation is busy with the due diligence now as we speak to underwrite the billion rand, of which we are very proud and excited.
“It’s a good testimonial for Namibia first and then for Trustco obviously.
“Anything can happen but as Trustco we are confident as we will not willy-nilly take on a project like that.”
Van Rooyen said it was important that more companies should look abroad to bring capital, skills and opportunities to the country as this grows the national cake “so that there is more to share for everyone.”
“There is a list of people that come to Namibia and take money out but what we are trying to do is bring money in for opportunities for Namibians,” he said.
Meanwhile, Trustco Finance a subsidiary of the Trustco Group, has signed loan agreements with three multinational finance companies worth a combined N$165 million.
Funding from the African Development Bank (N$65 million), the German Development Finance Institution (N$50 million) and PROPARCO (N$50 million), a French Development Finance Institution, will see an estimated 19500 new students being given study loans.
Together with the recent funding of N$80 million by the International Finance Corporation, Trustco says it hopes to grow its educational loan book to over N$500 million by 2014. The three loan agreements signed last week at Trustco’s headquarters, will be repayable in seven years and will attract an interest rate linked to the prime rate or to the jibar rate.
“As you know the loans we give to students are also linked to the prime rate so for us it was important to link the two so that as the rates go lower we can give a lower rate to the students and the other way round,” van Rooyen said.
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