Business News of 2014-05-08

Cocobod to seek almost $2 billion for next loan

Governor of the Bank of Ghana (BoG) Dr Henry Kofi Wampah has hinted Citi Business News that the country’s cocoa industry regulator, Cocobod will this year go for about 1.8 billion dollars for its syndicated loan.

This figure is higher than what the cocoa regulator went for last year. Last year Cocobod signed a $1.2 billion syndicated loan from international banks for the 2013/14 cocoa crop purchases as against $1.5 billion for 2012/13.

The credit facility between Cocobod and a consortium of international and local banks was led by French lender Societe General. The Cocobod syndicated loan is used to purchase cocoa beans from farmers. Last year the offer for 1.2 billion dollars was oversubscribed by about 75percent.

BoG Governor, Dr Henry Kofi Wampah told Citi Business News the increased figure is as a result of a higher projection of cocoa yield this year. ‘This year we are expecting a bigger crop yield the cocoa syndicated loan will be much higher, at least by 50 percent’.

Ghana is the world’s second largest cocoa exporter after Ivory Coast. It aims to raise its production to an average of 1 million tonnes annually from 800,000 tonnes through improved farming methods and better incentives.