COCOBO, Ghana inks US $1.5bn syndicated loan agreement

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COCOBO, Ghana inks US $1.5bn syndicated loan agreement

The Ghana Cocoa Board (COCOBOD) has signed a US$1.5 billion syndicated loan agreement with a consortium of international and local financial institutions for the purchase of cocoa beans for the 2021/2022 crop season.

Parliament earlier this year approved the deal which comes with a 1.1% interest plus libor compared to the 1.75% it paid for the US $1.3 billion it secured for the 2020/2021 crop season. With the first tranche of more than 50% of the amount expected to hit the COCOBOD’s account next month, the loan is expected to be retired by August next year in seven equal instalments.

The loan request, was oversubscribed by US $200million from the 24 financial institutions which include the Amro Bank, Bank of China Limited in London, Standard Chartered Bank, Industrial, and Commercial Bank of China and Ghana International Bank, Cooperative Rabobank, UA, and Societe General.

Medium to long-term target

The US $1.5bn amount is expected to be used to purchase some 950,000 tonnes of cocoa for the period. During the virtual pact signing ceremony in Accra yesterday, Chief Executive of the COCOBOD, Boahen Aidoo, said the response by the institutions to the deal is as a result of the growing confidence of industry players in the COCOBOD.

Medium to long-term target of the COCOBOD was to maintain or surpass the 1,045,500 million tonnes – an all-time record – produces in the 2020/2021 crop season. This, Aidoo said, would be done by enhancing the production enhancement programmes that included pruning, hand pollination and fertilisation to achieve the target of 1,500 kilogrammes of cocoa per hectare by the year 2025.

He disclosed that the government would with effect from October 1, 2021, roll out the Cocoa Farmers’ Pension Scheme, having piloted same in the New Edubiase district with some 2,800 farmers.

“Once rolled out, our farmers will also enjoy a decent retirement benefit and live happily after retirement from active farming. The loan will be used for its intended purposes and will be paid as scheduled. Our track record remains unblemished and we shall do everything possible to pay as planned,” said Mr. Aidoo.