Trustco gets loan lifeline from key shareholder
Trustco Group Holdings Limited yesterday announced the extension for the repayment date for a N$1 billion related party loan. Making the announcement via a statement, Trustco shared that Next Capital (Pty) Ltd, a key shareholder and lender, has elected to extend the date for the repayment initially due on 31 March 2024.
According to the statement, the decision comes as Trustco and Next engage in negotiations that could see the loan converted into an equity stake.
“This loan extension from Next is a strong vote of confidence in Trustco’s long-term prospects and growth strategy,” said Floors Abrahams, Trustco’s financial director.
“We appreciate Next’s collaborative approach and willingness to explore an arrangement that could create significant value for all investors.”
The statement further revealed that under the terms of the loan agreement approved by shareholders on 22 January 2019, Next has exercised its contractual right to postpone the repayment until the ongoing negotiations between the parties culminate in a new agreement or Next revokes the extension.
“Trustco is committed to leveraging this extension to further its strategic objectives and enhance shareholder value.
The potential conversion of the loan into an equity stake underscores the shared vision and commitment between Trustco and Next, and it is a testament to the robustness of Trustco’s growth strategy.
The Board is confident that this development will pave the way for a prosperous future, and it looks forward to sharing more updates as they unfold. This marks the dawn of an exhilarating new era in Trustco’s ongoing saga,” the statement reads.
Trustco further stated that historically, its investment portfolio has delivered “exceptional returns, with a wellbalanced asset mix, which has maintained an average weighting of 34% in US Dollar based assets, while the remaining 66% is invested in Namibian Dollar based assets”.