The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced plans to make an investment of ZAR 300 million (USD 28.8 million) in Trustco Group Holdings, a Namibia-based company specializing in microcredit and microinsurance, to increase the number of student loans in Namibia and expand microinsurance into unspecified countries in Sub-Saharan Africa [1].
IFC plans to purchase ZAR 200 million (USD 19.3 million) of Trustco’s 1 ZAR (USD .096) bonds recently listed on the Johannesburg Stock Exchange (JSE) as well as purchase approximately ZAR 30 million (USD 2.89 million) in equity for a 4.5 percent stake in the company [2]. IFC will have an opportunity to purchase additional shares worth ZAR 70 million (USD 6.74 million) in the future [1]. Further information on the transaction has not been released.
In 2010, IFC also loaned ZAR 80 million (USD 7.71 million) to Trustco Finance Limited, a Trustco subsidiary that focuses on disbursing student loans in Namibia [1]. At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent. As of March 2010 Trustco reported total assets of USD 137 million.
By Megan McGowan, Research Associate
About International Finance Corporation:
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent.
About Trustco Group Holdings:
Trustco Group Holdings is a Namibia-based company that specializes in microfinance, microinsurance and financial education. The company operates through several subsidiaries, including Trustco Media, Trustco Capital, Legal Shield Holdings and Trustco Education. In February 2009 Trustco entered the new Africa Board of the Johannesburg Stock Exchange (JSE) Limited. As of March 2010 Trustco reported total assets of USD 137 million.
Sources and Additional Resources:
[1] International Finance Corporation (IFC): “IFC Invests in Trustco to Support Educational Finance and Micro Insurance in Africa,” http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/A687CDDC4968065985257BCE003B56CA
[2] Independent Online: “Trustco gets R300m IFC endorsement” by Wiseman Khuzwayo, 22 August 2013: http://www.iol.co.za/business/news/trustco-gets-r300m-ifc-endorsement-1.1566186 – .Uh09EpVjuEF
[3] Morningstar: “Trustco Group Holdings,” http://investors.morningstar.com/ownership/shareholders-overview.html?t=TSCHF
MicroCapital.org article, 22 July 2013: MICROCAPITAL BRIEF: International Finance Corporation (IFC), KfW Entwicklungsbank Invest $5.4m in AccessBank Rwanda, https://www.microcapital.org/microcapital-brief-fmo-international-finance-corporation-ifc-kfw-entwicklungsbank-invest-5-4m-in-accessbank-rwanda/
MicroCapital.org article, 28 September 2010: MICROCAPITAL BRIEF: Trustco Plans to Expand Its “Free” Life Insurance Coverage to Microfinance Customers in Zimbabwe, https://www.microcapital.org/microcapital-brief-trustco-plans-to-expand-its-free-life-insurance-coverage-to-microfinance-customers-in-zimbabwe/
MicroCapital Universe: International Finance Corporation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe: Trustco Group Holdings:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Trustco+Group+Holdings
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: EBRD Purchases 5% Equity Stake in ProCredit from IFC, Increasing Exposure to SMEs in Europe, Ecuador
- MICROCAPITAL BRIEF: KEPFIC Member Pension Funds Invest $61m in Acorn Holdings, Kenya Mortgage Refinance Company (KMRC) to Boost Affordable Housing
- MICROCAPITAL BRIEF: Stanbic Bank Uganda, IFAD Seek to Reduce Costs of Remittances via FlexiPay E-wallet, Encourage Adoption via SACCOs
- MICROCAPITAL BRIEF: LOLC Buys 28% Equity Stake in Unguka Bank, Provider of Microfinance in Rwanda, from Incofin
- MICROCAPITAL BRIEF: Imkon of Uzbekistan Nets Convertible Debt from BOPA to Expand Microfinance, SME Finance
