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| Trustco Finance (Pty) Limited |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28761 |
| Company name | Trustco Group Holdings |
| Country |
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| Sector | Colleges, Universities, and Professional Schools |
| Environmental category | C |
| Department | Reg Manufact, Agri & Services, CAF/CLA |
| Status | Active |
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| Date SPI disclosed | June 29, 2010 |
| Projected board date | July 29, 2010 |
| Date revised SPI disclosed | July 6, 2010 |
| Previous Events | Invested: December 1, 2010
Signed: September 21, 2010
Approved: September 2, 2010 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| IFC is proposing to provide a 7-year senior loan of N$ 80 million (approx. US$10.9 million) to support the student lending programme of Trustco Finance, a wholly-owned subsidiary of Trustco Group Holdings (“TGH”). Trustco Finance provides loans to students to finance the upfront costs of tuition, study aids, and fees. These students are enrolled with the Institute for Open Learning which is also a wholly-owned subsidiary of TGH. |
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| Project sponsor and major shareholders of project company |
The Project is sponsored by Trustco Group Holdings, a publically listed Namibian company active in micro insurance, education and microfinance and information technology-driven solutions for the insurance and financial services sectors. The Group also has small interests in property and media.
TGH was acquired by Quinton Van Rooyen, who following the February 2009 listing on the Africa Board of the JSE, now owns 55.51% of the Group. Other large investors include Rennaisance Capital (13. 82%) and Emerging Africa Infrastructure Fund (5.71%). |
| Total project cost and amount and nature of IFC's investment |
| The total project costs is N$535 million (approx US$73 million) which represents the projected growth of the student loan book by 2014. The book is forecasted to grow by an average of 25% per annum over the next 4 years. The proposed IFC investment is an N$80 million (approx. US$10.9 million) A loan to Trustco Finance Limited. |
| Location of project and description of site |
| Trustco Finance Limited and Trustco Group Holdings are headquartered in Windhoek. TFL provides loans to students studying in Namibia. |
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| Anticipated development impact of the project |
The Project is expected to deliver strong development impact by:
• Enhancing access to additional teachers training courses
• Improving the prospects of high school dropouts
• Improving the productive capacity and job earning potential of the current workforce
• Improving the employability and job earning potential of high school graduates
• Facilitating the adoption of new skills and/or career changes by those in full time employment who cannot afford to leave work and enter university full time. |
| IFC's expected development contribution |
IFC will be providing long-term debt finance which heretofore was not available to TFL or TGH. The perceived IFC “Stamp of Approval” will enhance the attractiveness of TGH as an investment.
The group’s long term strategy is to expand into southern Africa and in this regard seeks a partner who has knowledge of or presence in these markets. IFC can support the group in this indevor. |
| Environmental and social issues - Category C |
As a student loan financing project, this IFC’s investment will not result in any significant impacts. It is worth mentioning that TGH owns two Pilatus PC12 aircraft which have known operating and safety risks which are adequately managed. In addition, the company owns various commercial properties for the company’s own use, residential properties for rental and one large vacant portion of land in Windhoek, Namibia.
The company’s operations generally comply with TGH’s own policies and standards, applicable national laws and regulations, IFC’s Performance Standards on Social and Environmental Sustainability and IFC’s applicable Environmental, Health and Safety Guidelines.
Based on the nature and scope of this investment, this is a Category C project according to IFC’s Environmental & Social Review Procedure and, as such, the preparation of an Environmental and Social Review Summary (ESRS) is therefore not required as well as any requirement for disclosure. |
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| For inquiries about the project, contact: |
Attention: Mr.Quinton van Rooyen
Group Managing Director
2 Keller Street
WINDHOEK, Namibia
Tel: +264-61-275 4000
Fax: +264-61-275 4090
E-mail: qvr@tgi.na
Website: www.tgi.na |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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