COCOBOD secures $1.13 billion loan to purchase cocoa

Ghana Cocoa Board (COCOBOD) has secured $1.13 billion loan from a consortium of international banks to meet its financing needs to purchase cocoa and related operations for the 2022/23 cocoa crop season.

The Board signed the agreement with Standard Chartered Bank Ghana Limited on behalf of the other lenders.

The facility, which is the largest soft commodity deal in sub-Saharan Africa, will be used to finance cocoa purchases and related operational activities in the crop season.

Minister of Finance, Ken Ofori-Atta, witnessed the signing ceremony together with the Minister of State at the Ministry of Finance, Charles Adu Boahen, and Dr Ernest Addison, the Governor of the Bank of Ghana.

“Despite the challenging context for COCOBOD and Ghana this year, the new annual financing for a thirtieth successive year closed successfully with the strong support of its relationship banks and enhanced level of collateralisation and pricing, confirmed the longstanding successful track record of this PXF,” a statement said.

Government confirmed its long term and continuous support to COCOBOD and to the domestic cocoa industry given the sector’s long standing critical role in the economy.

As a structured performance risk loan lenders continue not to require a sovereign guarantee, the statement added.

The loan will supply the much-needed foreign exchange liquidity to reduce pressure on the fast depreciating cedi demand, while strengthening consumer demand and reducing inflation expectations.

Since the 1992/93 crop season, COCOBOD has consistently and successfully, through the pre-export syndicated finance facility, obtained a receivables-backed syndicated loan each year from the international money market to finance its cocoa purchases.