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COCOBOD arranges one billion dollar war chest for
cocoa purchase
Accra, Sept. 4, Ghanadot/GNA – Ghana Cocoa Board (COCOBOD)
has obtained one billion dollars through a syndicated
pre-export trade finance facility to buy cocoa for the
2008/2009 cocoa year, making it the largest soft commodity
deal in the world.
The deal, which would enable COCOBOD to purchase about
650,000 tonnes of cocoa beans for the period, was over
subscribed by 33 per cent from a joint initial Mandated Lead
Arrangers (IMLA) which assembled in Accra on Wednesday to
seal the deal.
It is the second time the syndication has been signed in
Ghana after 16 years of COCOBOD’s pre-export trade facility,
which began in the 1993/1994 cocoa season with a 140 million
dollars.
The facility, which has a one-year repayment period with a
0.4 per cent interest rate, saw about 24 banks, both
Ghanaian and international financial institutions,
participating.
Addressing the lead arrangers at the signing ceremony, Mr
Isaac Osei, Chief Executive of the COCOBOD, said the
purchases would commerce earlier than the usual date and
therefore urged the financiers to honour obligations by or
on the September 15.
He said the one billion dollars was a manifestation of the
confidence the international banking sector had in Ghana
Cocoa Board and the current strong financial position of
Ghana.
“Our past records show that COCOBOD has always been able to
meet all its financial obligations to its lenders...I am
very confident that our team at COCOBOD would continuously
strive to maintain this record,” Mr Osei said.
He said with the intensification of the programmes that
COCOBOD had put in place, he was confident that the one
million tonnes production target by 2010 would be attained.
“With our investment, through a medium term facility, in
logistics, yield enhancement and quality assurance, the
prospects for cocoa over the next decade are very bright,”
he said.
Mr Osei saluted hardworking cocoa farmers whom, he said,
over the years had vigorously pursued the agenda set by
Tetteh Quarshie, the man who brought cocoa to Ghana, and
produced the best quality cocoa for the world market.
Mr Ebby Frederic of Standard Chartered Bank, one of the lead
managers of the syndicate, lauded COCOBOD’s record
achievement and said its successful story was hinged on the
company’s sustainability programme and ability to foster
partnership around world.
Mr Joe Mensah of Ghana International Bank, UK, said the over
subscription showed the credit rate of COCOBOD in the
international financial market at present and described the
performance as impeachable.
He urged local banks to consider participating and serving
as lead managers in future COCOBOD syndications.
Mr Mensah announced that Ghana International Bank, which was
responsible for managing Ghana’s offshore collection account
in UK on behalf of COCOBOD, would soon introduce an
electronic system to fast-track the collection cycle.
The seven lead arrangers were the Bank of Tokyo-Mitsubishi,
UFJ Limited, Ghana International Bank, Natixis, Societé
Géneralle Corporate and Investment Banking, Standard
Chartered Bank and Sumitomo Mitsui Banking Corporation.
Individually, Stanbic Bank, Ghana, Ghana Commercial Bank and
Ecobank Ghana are committing US$75 million, US$25 million
and US$5 million respectively to the syndicate.
GNA
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