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Restructuring of Trustco debt garners more than half a billion dollars in new funding for Institute of Open Learning

Restructuring of Trustco debt garners more than half a billion dollars in new funding for Institute of Open Learning

Trustco’s ordeal to renegotiate its debt agreements with both continental and international financiers, has come to an end, in the process unlocking almost N$600 million in additional liquidity which the group will employ for further strategic investment in its financial services division.

This week, Trustco referred shareholders to the two previous announcements made on the Stock Exchange News Service (SENS) on 03 and 23 June, advising them that the group has advanced in the process of renegotiating the terms of its debt.

“Trustco shareholders are referred to the SENS announcements dated 3 June 2020 and 23 June 2020 and are advised that the group has completed its restructuring process with its US, Swiss and German based debt funders,” the group said in a statement released on Friday in Windhoek.

The negotiations concluded a protracted process that affects interest payments and provides for capital holidays. Payment terms were also extended, for some of the loans by up to seven years.

Additionally, the lenders approved new credit of US$20 million or the equivalent of N$340 million. This together with the additional N$250 million new funding from African lenders, have given the group a funding windfall of N$590 million. The group’s African commitments have also been restructured. According to a YouTube video flighted by the company simultaneously with the release of Friday’s statement, the bulk of the new liquidity will flow into the company’s extensive educational interest through the Institute of Open Learning.

Trustco Group Managing Director, Dr Quinton van Rooyen advised shareholders that the finalisation of the negotiations are subject to the legal documentation but adding that the group has no reason to believe that these transactions will not be successful.

“Despite the austere conditions currently prevailing in international capital markets, the group’s basket of world-class assets and excellent track record have enabled Trustco to once again secure funding to provide the outsized returns stakeholders expect of us,” he stated.


 

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