10 Jul 2017

Ghana's Cocoa Loan Syndication Oversubscribed To $1.6 Bln - Sources

Ghana's cocoa regulator COCOBOD has already received around $1.6 billion worth of bids in an oversubscribed loan syndication aimed at financing purchases of the 2017/18 crop, government and COCOBOD sources told Reuters on Monday.
Image - Ghana Cocoa Beans
Cocoa beans from Ghana. Image Courtesy Ghananewsonline

The world's second-largest cocoa producer after Ivory Coast uses loans from international banks every year for bean purchases. It had earlier said it aimed to raise $1.3 billion in September to bring in a crop it estimated at around 850,000 tons.

Two sources familiar with this year's transaction told Reuters that more than 20 banks have signed up to the syndication since a London roadshow by COCOBOD last month.

"It was a successful roadshow because not only was the target loan amount oversubscribed by at least $300 million, but there were indications of new banks signing up to the syndication for the first time," one industry source said.


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The syndication is still open for lenders to join until September, another source said. It is unclear whether COCOBOD would retain the extra bids or stick to its original $1.3 billion target.

The regulator received $1.8 billion last year for the 2016/17 crop purchases but the loan ran out early and COCOBOD's new management has said the money had been mismanaged.

Ghana's COCOBOD raised $200 million in a bond issued via the central bank to cover its operations for the rest of the cocoa season, the regulator's chief executive Joseph Aidoo said.

Source: Reuters Africa

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