Joseph Boahen Aidoo, CEO of COCOBOD
A total of 21 international banks have arranged a $1.3 billion cocoa syndicated loan for Ghana.
The amount, which is the 26th receivables-backed trade finance facility, is for the purchase of cocoa for the 2018/2019 cocoa farming season.
The agreement was signed between the Ghana Cocoa Board (COCOBOD) and the banks on Thursday, September 20, 2018 in Amsterdam, Holland.
The banks include Bank of China, Standard Chartered Bank, ABN Ambrose, ICBC, Ghana International Bank.
Additionally, some banks based in Ghana, namely Ecobank, Societe Generale Bank, were part of the arrangement.
Ghana Cocoa Board (COCOBOD), BUSINESS GUIDE gathered, has the opportunity of receiving an additional $250 million from the banks in the light crop season for the purchase of cocoa.
The purchases are expected to be made through Licensed Buying Companies (LBCs) in the country.
Addressing journalists via skype from Holland, Chief Executive Officer (CEO) of COCOBOD, Joseph Boahen-Adu, explained that the first draw down of the $1.3 billion, which is $650 million, would hit the account of Bank of Ghana (BoG) by October 4, this year, and that the rest of the amount shall be delivered to Ghana by the end of November.
Mr. Boahen-Adu observed that the interest on the loan facility is Libor+60 basis points.
The facility would enable the LBCs to pay our farmers promptly for 2018/2019, he said, adding that “we pledge our commitment to make sure that the cocoa sector remains vibrant.”
This year, Ghana is targeting a production capacity of over 900,000 metric tonnes.
According to the CEO, “The facility that we signed today is of tremendous importance to Ghana.”
Parliament and other relevant state institutions were represented at the signing ceremony in Amsterdam.
COCOBOD signed an agreement $1.8 billion for the 2015/2016 cocoa season.
COCOBOD took this amount of money in order to repay on time, as the loan is a short-term facility repayable within a period of seven months.
Mr. Boahen-Adu also told journalists that COCOBOD was seeking additional $300 million in medium to long-term loans from the banks to enable it undertake some rehabilitation works in the country’s cocoa sector.
He indicated that Ghana and Cote d’ Ivoire, the world’s two largest cocoa producers, were taking steps to secure a $1.3 billion loan facility from the African Development Bank (AfDB) to improve their respective cocoa sectors.
“Ghana will receive $600 million from that amount when granted,” Mr. Boahen-Adu added
By Melvin Tarlue
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