Trustco looks to raise N$2.4 billion

Trustco and United States fund Riskowitz Value Fund LP (RVF) will enter into an option to make a cash investment of up to N$950 million into Trustco, entrenching RVF as a key anchor foreign investor. The capital will provide Trustco unparalleled financial muscle to capitalise on new opportunities and strengthen existing investments in a Namibian economy that is poised for rapid growth, the local company said.

Additionally, Next Capital and entities affiliated with Trustco’s founder, Quinton van Rooyen, made an offer to convert debt in the amount of N$1.48 billion into new ordinary shares in Trustco. This transformation of debt into equity is a proactive approach to debt management that unlocks free cash flows for future investment, frees up capital for dividends in the medium term, and more than doubles Trustco’s net asset value. The conversion option will optimise the group's capital structure and align the interests of founder shareholders with minority holders and key debtholders.

"With our country's wealth of natural resources, stable governance and strategic location, Namibia's economic future is filled with promise," Van Rooyen said.

"These shareholder actions allow Trustco to convert national potential into investment opportunities and shareholder returns, and reinforces our progressive trajectory and diversification strategy. These moves emphasise Trustco's dedication to creating sustainable value for our shareholders and solidifying our position in the market. We will channel this investment into innovations that empower more co-investors to secure their financial futures and reward shareholders and Namibians in general."

RVF's Sean Riskowitz added: "These transactions represent an opportunity to align our interests and leverage Trustco's expansion. They signify shareholder confidence in Trustco's vision, high value assets and potential for sustained growth across its diverse investment portfolio. RVF is committed to supporting dynamic enterprises in emerging markets and leveraging opportunities that drive mutual success".