Funding raised for Trustco Bank Namibia
Trustco Group concluded a 100% acquisition of Fides Bank Namibia Limited, one of six licensed banks in Namibia in 2014. The financial institution was renamed “Trustco Bank Namibia” following the acquisition and recapitalization.
SME lending continues to be a priority of the Bank: to offer financial assistance to Namibian entrepreneurs which will boost employment and profitability of the SMEs in the country. Part of the funding raised in this financing round will be used to restart this part of the loan book. Frankfurt School of Finance and Management is providing technical assistance to the Bank.
The Bank also plans to expand the recently added mortgage loan product, which is which is especially targeted at the “gap market” ie the middle class Namibians through home loans, as well as commercial property loans, and leverages the group’s property expertise.
The acquisition is a natural progression of the Group’s business model , significantly broadening the products of the finance division and brings deposit mobilising capacity into the Group as a whole. The acquisition is consistent with key themes we see elsewhere in the Continent, ie specialist institutions broadening their product mix and targeting deposit taking. The key to Trustco Bank’s expansion strategy will be the use of technology through mobile banking and alternative service channels. The Bank will cross sell its products to the Group’s existing clients as a way to grow its client base.