Ghana COCOBOD’s $1.75b loan facility over-subscribed
The 18th annual pre-export syndicated finance loan worth US$1.75 billion to purchase cocoa for the 2011/12 crop season has been over-subscribed, says a top official of the Ghana Cocoa Board (COCOBOD).
“This year’s loan facility is $250 million more than a year earlier. We decided to raise an additional $250 million to fund infrastructure including roads and warehouses,” the official told Business and Financial Times.
The arranging banks for the loan will be announced next month. This year’s facility is the biggest ever to be raised by Cocobod.
Ahead of every crop year in Ghana, Cocobod raises syndicated loans through international financers in Europe for cocoa purchases.
“The high participation of international and local banks is due to our integrity and image of producing quality cocoa beans.
“I don’t have the names of the banks off-head, but a Chinese bank is leading the syndication,” said the official who pleaded for anonymity.
“Currently, we’re waiting for our agents to submit their final reports for approval by close of this month,” added the official.
Last year, Ghana, the second-largest cocoa producer secured US$1.5billion to fund cocoa purchases for export in the 2010/11 season, 25 percent more than targetted.
The facility was put together by a group of international and local banks led by Credit Agricole and Investment bank, which is headquartered in France.
Industry analysts say this reflects the confidence of the international financial market in Cocobod’s operations and in Ghana’s potential as a cocoa producer.
According to Cocobod, the country produced a record 916,000 metric tonnes of cocoa during the main crop this year due to good weather and improved farming techniques.
This was 56 percent above last year’s levels and the most since Ghana registered its name on the international market as a cocoa producer.
Though five more weeks to end the light crop, Cocobod is optimistic that its 80,000 light crop target could help archive the projected one million tonnes — objective it has set by itself for 2012/2013 season.
High commodities prices at the world market are expected to provide a boost to Ghana’s economy.
In revised budget estimates approved by Parliament last month, the Mills administration raised projected growth to 14.4 percent from its previous 12.3 percent forecast. The country’s real Gross Domestic Product growth (excluding oil) forecast is 7.5 percent.
Source: B&FT
Government is increasing the budget with supplementary budget to fund roads, which was already in previous budget and cocoaboard is also seeking loan to fund roads interesting loans everywhere Ghana will continue to be in a hole for generations to come with nothing to show for. leaders keep filling their pocket with big bellieslook like they are pregnant. when will these grown learn from what is happening around us especially financial current crisis.
I think it is about time we export only processed cocoa products,this will
enhance technology,increase profit,create jobs and limit deforestation.
There is also a need for the govt to privatise the cocoa export like what the Ivorians are doing.Thank you.