Ghana’s Cocoa Marketing Board (COCOBOD) has finalized an $800 million syndicated loan with banks, with plans to access the initial $600 million this week, according to the deputy chief executive officer.
The annual loan, typically agreed upon in September to fund cocoa bean purchases from farmers, has faced delays due to Ghana’s severe economic crisis.
COCOBOD’s Deputy CEO, Ray Ankrah, noted the challenging nature of this year’s transaction, highlighting that the terms remain consistent with those presented to parliament last month. Ghana’s parliament approved the transaction in November, allowing COCOBOD to proceed with the participating banks.
The loan’s terms include an interest rate of nearly 8%, incorporating the one-month Secured Overnight Financing Rate (SOFR) and a margin. A central bank official, speaking anonymously, suggested that the drawdown this week could bolster the country’s reserves.
Economists believe the loan may help support the local cedi currency by alleviating dollar demand amid slow progress in restructuring bilateral debt.
Despite anticipating smaller cocoa crops due to adverse weather conditions, COCOBOD’s forecast for the 2023/24 season is approximately 800,000 tons, though industry sources estimate a closer figure of 600,000 tons.
The $800 million loan represents one of the lowest in the past decade. COCOBOD aims to capitalize on record-high global cocoa prices by selling a portion of the country’s crop on the spot market.
Source – citinewsroom.com
