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TRUSTCO GROUP HOLDINGS LIMITED - Loan Facility: USD 20 Million Facilities Agreement Between Trustco Finance and DEG

Release Date: 03/06/2020 16:10
Code(s): TTO     PDF:  
 
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Loan Facility: USD 20 Million Facilities Agreement Between Trustco Finance and DEG

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
OTCQX share code: TSCHY
ISIN Number: NA000A0RF067
(“Trustco” or “the Company”)

LOAN FACILITY: USD 20 000 000 FACILITIES AGREEMENT BETWEEN TRUSTCO FINANCE (PTY) LIMITED
(“TRUSTCO FINANCE”) AS THE BORROWER AND DEUTSCHE INVESTITIONS UND ENTWICKLUNGSGESELLSCHAFT
(“DEG”) AS THE LENDER

Trustco shareholders (“Shareholders”) are hereby informed that DEG, a Development Finance Institution based
in the Federal Republic of Germany, in association with the KfW Group, approved a USD term loan facility to
Trustco Finance, a subsidiary of Trustco Group Holdings Limited (“Trustco”), in the amount of USD 20 million
(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
(Pty) Ltd (“IOL”). 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.

* One Namibian dollar is equal to one South African rand.

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.

Trustco’s Head of Education, Ilana Calitz, stated, “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 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 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 NAD 550 Million to Trustco in debt.

The approval is subject to a final agreement that is currently being drafted by the Parties.

3 June 2020

Komada Holdings (Pty) Ltd
Company Secretary
Trustco Group Holdings Limited

JSE Sponsor
Vunani Corporate Finance - Johannesburg

NSX Sponsor
Simonis Storm Securities Proprietary Limited – Windhoek

OTCQX Sponsor
J.P Galda & Co – New York

Date: 03-06-2020 04:10:00
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