COCOBOD optimistic of achieving 950,000 mt target for 2021/2022 season; to receive $750m first tranche of syndicated loan in October
The Ghana Cocoa Board (COCOBOD) is optimistic of attaining its target of harvesting some 950,000 metric tonnes of cocoa for the 2021/2022 cocoa season.
COCOBOD’s optimism comes on the back of the production of the historic 1.06 million metric tons of cocoa for the 2021/2022 cocoa season far exceeding the Board’s production target for the crop season and also beating the previous record of 1.024 million metric tons in the 2010/ 2011 crop season.
“We are very optimistic of achieving and even going beyond the 918,000 to 950,000 metric tonnes target we have set for the 2021/2022 season because we have put in place all the right measures to achieve that. And also in the upcoming season there will be no delays in payment for cocoa beans due to the syndicated loan which have been increased for cocoa purchases for the next season [sic],” remarked Ray Ankrah, Deputy Chief Executive Officer in Charge of Finance and Administration at COCOBOD.
The COCOBOD on Wednesday signed a syndicated loan of $1.5 billion for the 2021/2022 cocoa crop season.
The $1.5 billion syndicated loan represents an additional $200 million loan facility secured for purchases of cocoa beans for the 2021/2022 season after the $1.3 billion syndicated loan for the 2020/2021 season was inadequate to finance cocoa purchases due to the historic 1 million metric tonnes of cocoa harvested for the season.
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The first tranche of the loan which is some $750 million is expected to be received by the Bank of Ghana (BoG) in October.
“For the 2021/2022 Cocoa season, we are going in for $1.5 billion, we are already done with the syndication process and by mid-October, we should have the first drawdown of the loan,” stated CEO of COCOBOD, Dr Joseph Aidoo.
The loan facility aside being used to finance cocoa purchases, will also be used for related operational activities in the crop season.
COCOBOD has consistently and successfully, through the pre-export syndicated finance facility, obtained a receivables-backed syndicated loan each year from the international money market to finance its cocoa purchases.
The latest loan facility, which has an interest rate plus libor of 1.75%, is repayable in seven calendar months and projected to help purchase the targeted 950,000 metric tonnes of cocoa beans for the 2021/2022 season.
