COCOBOD raises one billion dollars to purchase cocoa

Accra, Sept. 4, 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, Societ=E9 G=E9neralle 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. 4 Sept. 08