COCOBOD says plans to raise $1.3 billion on course

COCOBOD says its plans to raise US$1.3 billion through a syndicate of banks is on course and not affected by the perceived risks associated with the global pandemic.

COCOBOD has denied a report that its usual lenders have declined to guarantee the loan.

Loan Pricing Corporation, a unit of the financial data firm Refinitiv, reported last week that financing for purchases during the 2020/21 growing season would be a club loan to reduce risk, amid uncertainty related to the coronavirus pandemic.

Speaking at the launch of a $600 million receivables-backed loan on Tuesday, the chief executive officer of COCOBOD, Joseph Boahen Aidoo, said financial institutions, including COCOBOD’s usual lenders, submitted proposals on 12 June to provide a $1.3 billion syndicated loan for 2020/21.

“On 12 June 2020, the financial institutions, including COCOBOD’s traditional banks, submitted their proposals,” Boahen Aidoo said.

“So, COCOBOD is currently negotiating the terms of the proposals with the Banks; which is the normal practice. Once the terms are finalised, all due processes will be followed through to their logical conclusion, up to the signing of the facility which is expected in September 2020.”

Meanwhile, Boahen Aidoo said COCOBOD has paid its 2019/2020 loan facility in June 2020, three months ahead of schedule, even in this time of COVID-19.

Ghana is the world’s second-largest cocoa producer behind its western neighbour, Côte d’Ivoire.

Price of cocoa

Boahen Aidoo hinted at conclusive discussions with the government to increase the price of cocoa this year.

The government currently buys a bag of cocoa beans from the farmer at GHC515.

The CEO said because the cocoa sector was the backbone of Ghana’s economy, and helps to ensure the stability of the cedi, COCOBOD and the government have taken bold decisions which will boost the welfare of the 1.2 million cocoa farmers in Ghana.