COCOBOD signed a $1.5billion Pre-export Syndicated Finance Facility to finance the 2021/2022 cocoa season.

COCOBOD signed a $1.5billion Pre-export Syndicated Finance Facility to finance the 2021/2022 cocoa season.

Management of Ghana Cocoa Board in today 22 September has presented the signing of pre-export syndicated finance facility for the 2021/22 cocoa season purchases. 

The loan facility which is $1.5billion is intended to finance Cocoa purchases and its operations for the 2021/22 crop year, with the interest rate plus libor of 1.1 %, and it is repayable in seven (7) months which will start from February to August in the year 2022 which would help purchase a projected 950,000 metric tonnes of cocoa.

Mr. Joseph Aidoo, the CEO of cocobod thanked the banks for their support for the cocoa industry and their willingness to fund of the operation of the industry, “Management of Cocobod appreciates your unflinching commitment in these difficult times,” he said.

He added ‘Cocoa purchases at the end of the 2020 to 2021 cropping year stood at 1.045 million metric tonnes, breaking our 10-year record set in the 2010/2011 season, We need to commend ourselves for collectively contributing to the realization of this milestone, and challenge ourselves to do even better in the coming year.”

Mr Aidoo said the target of achieving productivity enhancement target of 1,500 kilogrammes per hectare by 2025 is near accomplished as mass pruning, irrigation, and mass spraying had increased productivity levels from 450 kilogrammes per hectare to around 1,000 kilogrammes per hectare.

He expressed optimism about the future of the cocoa industry as government committed more resources to the national cocoa rehabilitation programme.

Dr Afriyie Akoto, minister for food and agriculture said the participation of the banks in the syndicated loan was affirmation of confidence in the Ghanaian economy and government’s stable economy policies.

He added that Ghana had not defaulted in its payment of the loan since the 1992/93 crop. He said the loan would be used to ensure prompt payment to farmers and reiterated government commitment to make the cocoa industry a strong backbone of the economy.

The facility is about the future of the cocoa industry as government committed more resources to the national cocoa rehabilitation programme. 

Dr Afriyie Akoto said the participation of the banks in the syndicated loan was affirmation of confidence in the Ghanaian economy and government’s stable economy policies.

Mrs Mansa Nettey, CEO of Standard Chartered, on behalf of the arrangers, reiterated commitment for the continuous support for the Ghanaian economy.

Business News