Guest Contributor | Feb 21, 2024 | 0
Trustco Life raises first N$50 million, proceeds to second tranche of N$150 million
Trustco Life announced this week that its N$50 million domestic investment programme, launched in June this year, is fully subscribed, only four months later, and cannot accept any new investments.
Trustco Life Chief Executive, Anette Brand was satisfied with the outcome of the first tranche. “Trustco Life offers various innovative investment products to our loyal clientele and any member of the public. Today we are extremely thankful to be in a position to offer our investors with fixed, more than above-average market returns.”
The success of the first round of domestic funding convinced the insurer’s board to authorise a second programme, this time for N$150 million. The funds will be invested in student loans.
By the time of the announcement on Tuesday 06 December 2022, the early-bird investors have already earned just over N$1.2 million in interest.
Investment periods range from one month to sixty months. Guaranteed interest earned ranges from 12.52% per annum for 12 months to a whopping almost 15% for a committed 60-month investment. “Investors who invested for 60 months and chose the option to receive their interest on maturity of the investment will more than double their investment,” Trustco Life assured its investing customers.
Trustco Life is confident that it can generate more than 15% return on investment from student loans, which the company believes will enable it to offer these above-average returns.
Asked about Trustco Life’s ability to sustain the appealling guaranteed interest income, Brand responded “With a history and data covering more than 17 years, we are in a position to know what returns can be generated from the [student] loans, consequently we can comfortably offer and guarantee the interest rates on these [investment] programmes. It is important to note that the business model and calculatioins were checked by an external actuary and approved in compliance with legal requirements.”
“[Furthermore], the N$150 million programme carries its own interest terms and conditions and is completely separate from the [first] Trustco Domestic Investment Programme 6a.22.”