COCOBOD raises $320m

THE Ghana Cocoa Board (COCOBOD) has successfully raised $320 million on the international financial market to support this year?s cocoa purchases. The amount, which was raised through international syndication, was led by Barclays Bank and Standard Chartered Bank.

This is the 10th year since the COCOBOD has raised such facilities on the international financial market to support the cocoa industry. The agreement on the syndication is expected to be signed on September 23, this year, in London.

Commenting on the syndication, Mr Alhassan Andani, the Executive Head, Corporate Banking, Barclays Bank said the amount will be a big boost to the national economy.

He said the subscription by the international financial market was over subscribed and stated that the country, the government and COCOBOD itself should be proud of the level of achievement.

Mr Andani said to be on the international financial market consistently for 10 years shows the level of confidence that the market has in the cocoa industry. According to Mr Andani, previous facilities raised were done against the background of the Asian debt crises, socio-economic and political problems of the third world countries, political and economic crises in Latin America and the recent September 11 events in the United States.

He said COCOBOD has not defaulted even slightly in its repayment schedules since it started the international syndication, adding that ?COCOBOD has not given their lenders any cause for concern?.

On the disbursement of the facilities, Mr Andani said there are no conditions attached and said the only requirement is for COCOBOD to obtain a fixed price contract with its buyers.

Mr Andani said such inflows will enable the government, through the Bank of Ghana, to manage the country?s foreign exchange supply on the domestic market. He said such inflows will again be available for strategic imports such as crude oil, medical facilities and the management of the country?s external debt services.

The funds, which have been syndicated, will be used to purchase cocoa beans for the 2002/2003 season which is likely to be opened in late September. The COCOBOD is considered to be one of the premium cocoa organisations in the world and cocoa from the country commands a price premium due to its high quality.