Ghana's Cocoa Marketing Board (COCOBOD) has signed an $800 million syndicated loan with banks, anticipating the drawdown of the first $600 million as early as this week, according to COCOBOD Deputy CEO Ray Ankrah.
Ankrah noted the challenges faced in finalizing the transaction, stating, “I joined COCOBOD in 2018 and this is the hardest transaction we have had.” He confirmed that the loan terms, approved by Ghana's parliament in November, remain unchanged.
“We're drawing down $600 million by the end of this week, and we expect to draw down the $200 million in the middle to the end of January,” Ankrah added.
Under the approved terms, COCOBOD will pay nearly 8% interest, inclusive of the one-month Secured Overnight Financing Rate (SOFR) at around 5.3% and a margin of 2.65%.
A central bank official, requesting anonymity, mentioned that the drawdown this week could bolster the country's reserves. Economist Professor Agyapomaa Gyeke-Dako from the University of Ghana stated that the loan might support the local cedi currency by reducing dollar demand linked to the slow progress in restructuring Ghana's bilateral debt.
Ghana and Ivory Coast anticipate smaller cocoa crops due to adverse weather conditions. COCOBOD has officially forecasted production of about 800,000 tons for the 2023/24 season, although industry sources estimate a harvest closer to 600,000 tons.
The $800 million loan, considered among the lowest in a decade, comes as COCOBOD plans to capitalize on record-high global cocoa prices by selling part of the country's crop on the spot market.
