COCOBOD is set to sign its annual cocoa loan syndication deal with some 20 French banks in September 2019, report has revealed.
The pending deal comes after Parliament of Ghana approved COCOBOD request to borrow up to $1.5 billion to help cocoa beans purchases for the 2019/2020 crop season.
According to documents submitted to Parliament, this is how the GH¢5.49 billion borrowed last year was used.
Seed fund to LBCs for cocoa purchases – ¢1.935, 325, 697.95
CTORs/Cocoa deliverables paid to LBCs – ¢2,813,860,155. 30
Inputs/CODAPEC and Hi Tech Expenses – ¢395,822,471.63
Operational Expenses – ¢382,796,675.12
Total – ¢5,497,805,000
According to reports, COCOBOD could sign the deal with 20 banks possibly on September 13 in Paris, France but might not take the entire amount approved by Parliament
Other industry players are anticipating to see whether the deal will be oversubscribed by the participating commercial banks.
Report in the media suggest that some $300 million have already been secured through a medium-term facility from some of the 20 commercial banks that would be supporting COCOBOD’s syndication facility. $650 million facility from the African Development Bank is expected to support COCOBOD’s operations and such the amount so far can enable COCOBOD to meet its financial needs for the 2019/2020 crop season.
Meanwhile, the first tranche of the funds is likely to hit the Bank of Ghana accounts in the first week in October.
The 2019/2020 syndicated loan would be drawn down in three tranches.
First would be 50 per cent of the $1.3 billion, which would translate to about $650 million with an additional $450 million to be made in November.
In related development, Ghana has increased its cocoa farmgate price to GHC8,000 ($1,484) per tonne for the 2019/2020 season beginning October this year.