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Monday, 23 October 2017

European and International Banks Loan COCOBOD $1.3bn

A total of 25 banks and 66 bidders took part in this year’s cocoa purchases loan arrangement with Ghana Cocoa Board (COCOBOD), Chief Executive Officer (CEO) Joseph Boahen Aidoo has said. COCOBOD realised $1.3 billion from the syndicated loan facility to buy cocoa beans for the 2017/2018 crop season at an interest of 0.65 percent. The signing ceremony, which took place in Paris, France on Wednesday 20 September, marked the 25th anniversary of Ghana’s engagement in soft commodity financing on the international market. Mr Aidoo, who addressed the media in Accra Wednesday via a telephone interview from Paris shortly after signing of the deal, described it as one of the best interest rates. There was oversubscription of the loan this year to the tune of $2.4 billion, but Cocobod opted for only $1.3 billion, taking into consideration the anticipated volume of 850,000 metric tonnes of cocoa to be produced in the 2017/2018 season. Ghana collected $1.8 billion during the 2016/2017 crop season and was able to repay a month earlier before the repayment deadline, which was August 2017. The CEO described Cocobod as a ‘first class borrower,’ saying the ability of the West African country to consistently repay its cocoa loans has boasted confidence among the participating banks. Mr. Aidoo indicated that the first tranche of the loan amount shall hit Bank of Ghana’s account by the second week of October 2017 and repayment shall begin by February 2018. The Coordinated Initial Mandated Lead Arrangers for the 2017/2018 facility, BUSINESS GUIDE gathered, include Rabobank, Credit Agricole Corporate & Investment Bank, Natixis, Standard Bank, Sumitomo Mitsui Banking Corporation and Ghana International Bank.

Source: Dailyguideafrica.com