COCOBOD signs $300m loan to refinance bills, finance programs

COCOBOD signs $300m loan to refinance bills, finance programs
Source: Ghana | JoyBusiness | JAD
Date: 20-03-2019 Time: 02:03:49:pm

COCOBOD has signed a $300 million three-year loan Facility with several international lenders, a statement from COCOBOD has said.

The facility will be used to refinance Cocoa Bills raised by Bank of Ghana on behalf of Cocobod and also to finance production enhancement programmes.

To ensure sustainability of the cocoa economy in Ghana, Cocobod continues to institute several strategies, projects and programmes that seek to ensure good agronomic practices to preserve the fragile tropical ecosystem, improve labour practices and conditions as well as the livelihoods of farmers including women and children.

The facility will pay an initial margin of 295bps p.a. over USD LIBOR and will include a margin incentive mechanism subject to the achievement of the above-mentioned environmental and socials objectives.

In order to achieve greater strides in these objectives, Cocobod has chosen to include environmental and social objectives in the credit agreement agreed with the Arranging Group, aimed at  promoting environmentally friendly cocoa production, increasing sensitivity to child labour and empowering women.

The Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo said, “Ghana Cocoa Board is pleased with the signing of this facility which will go a long way to help in carrying out its sustainability programmes in all cocoa regions to enhance the social and environmental sustainability of cocoa farming and also improve the livelihood of farmers.’’ 

The $300 million receivables-backed trade finance facility was underwritten by Natixis, Cooperative Rabobank UA, Credit Agricole Corporate and Investment Bank, Societe Generale, and MUFG Bank, Natixis.