COCOBOD signs $1.2bn Trade Finance facility

for 2009/2010 crop season.

Ghana Cocoa Board (COCOBOD) on 25th September 2009 signed a trade facility of $1.2 billion US dollars with international financiers for the purchase of cocoa in the 2009-2010 crop year in Paris.

Every year, COCOBOD seeks funding from international financiers for cocoa purchases in the ensuing season. This year’s facility was once again over subscribed with new banks joining the syndicate. The mandated organisers this year was Ghana International Bank, Natixis, Societe Generale and Standard Chartered Bank.

Mr Tony Fofie Chief Executive of COCOBOD in his speech thanked the banks for making available the facility. He assured them that their confidence in COCOBOD and the New Democratic Congress Party led administration of Ghana has not been misplaced. Mr Fofie reminded all that the present syndicated loan agreement process was initiated during the tenure of the NDC in the 1992/1993 cocoa season. He went further to recall that the core structural reforms and strategies that have been beneficial to the cocoa sector today begun during the tenure of the last NDC administration. Commenting on the global economic crisis Mr Fofie was optimistic that COCOBOD as a first class borrower will continue to meet its obligation under this loan agreement making the Ghana Cocoa sector attractive for all. The CEO of COCOBOD paid tribute to all actors in the Ghana Cocoa value chain. Mr Fofie thanked the head of chancery at the Ghana Embassy in France Mrs Novisi Abaidoo for representing His Excellency Prof. Mills at the ceremony.

In her speech the head of chancery at Ghana Embassy in France Mrs Novisi Abaidoo emphasised that the government under the leadership of H.E Professor Evans Atta Mills, guided by the four pillars of transparent and accountable governance; the creation of jobs for the people; investing in the people and the expansion of infrastructure is committed to enhancing the growth and development of the industry.

The deputy head of Global energy and commodities, Natixis, Mr Dominique Fraisse reminded all that the facility signed was made possible because of “the historic rendez-vous between a long time, first class performer of the real economy –the Ghana Cocoa Board- and a banking community in search of safe values and fair equity remuneration.”

Other delegates who spoke at the ceremony included Mr Andrew Kairu Chief Operating Officer Ghana International Bank, Mr Kweku Bedu-Addo, regional head Origination and Client Coverage, West Africa, Standard Chartered Bank and Mr Federico Turegano, Global Head of Natural Resources and Energy Financing Societe Generale.

The other banks involved in making the facility the largest soft commodity deal in sub Saharan Africa were Bank of Tokyo Mitsubishi-UfJ, CAYLON, ICBC, Sumitomo Mistui Banking Corporation, BNP Paribas, HSBC, KFW, NED Bank, ECOBANK, African Development Bank, Banco Espirito Santo, BHF Bank, FBN Bank, DZ Bank, Fortis Bank Nederland, Intesa Sanpaolo, Landesbank Baden-Wuerttemberg, Medicapital Bank, Union Bank UK, Zenith Bank, West LB, Bank of Baroda, China development bank, Ghana Commercial Bank, Mega International Commercial Bank Co, National Bank of Kuwait, OPEC Fund for International Development, State Bank of India