Johannesburg, South Africa, August 21, 2013--IFC,
a member of the World Bank Group, today announced a ZAR 300 million investment
in Trustco Group Holdings to support its student lending activities in
Namibia and expand micro insurance into new countries in Sub-Saharan Africa.
IFC’s investment will enhance access to higher education and affordable
IFC will purchase the first ZAR 200 million of the company’s recently
listed ZAR 1.0 billion notes programme. IFC will further subscribe for
up to ZAR 30 million of equity in Trustco through a purchase of new, listed
shares of Trustco Group Holdings. IFC will have an opportunity to acquire
a further ZAR 70 million shares in the future. This investment follows
an existing ZAR 80 million loan from IFC to Trustco’s student lending
subsidiary, Trustco Finance Limited, which was concluded in 2010.
Quinton van Rooyen, Group Managing Director of Trustco Group Holdings said
“This investment from IFC sends an important signal about the strength
of Trustco’s business model and prospects for expansion in Africa. It
will strengthen our balance sheet and help support our efforts to raise
additional financing. It is the first time that a publically-traded Namibian
Company accesses the debt capital markets directly through the listing
of a ZAR 1.0 billion note program on the JSE. We are very pleased with
the IFC partnership. IFC is a world-leading, AAA rated financial institution.”
Saleem Karimjee, IFC Senior Manager for Southern Africa, said, “IFC is
committed to supporting companies that provide access to financial products
and services at the base of the economic pyramid. Trustco is an innovative
company with opportunities to expand into new markets. By supporting
Trustco’s corporate bond programme IFC is further encouraging deeper capital
markets, which is critical to the development of Africa’s corporate sector.”
Trustco is a Namibia-based company with a focus on micro financial services
to previously excluded communities, especially micro insurance and microfinance
for education. Trustco has a dual listing on the Namibian Stock Exchange
and the main board of the Johannesburg Stock Exchange.
The IFC recognizes Namibia as an important investment destination and continues
to appreciate the value of Trustco’s inclusive business focus and dynamic
approach that has made it one of Namibia’s fastest growing companies.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit