Republic Bank makes provision for GHS 400m exposure to cocoa bills
Republic Bank Ghana has made adequate provisions for its GHS 400m exposure against cocoa bills for which processes to have the short-term debt securities restructured have been commenced by the Ghana Cocoa Board (COCOBOD).
This is according to the Managing Director, Benjamin Dzoboku.
Speaking to norvanreports at the bank’s 32nd Annual General Meeting (AGM) on Wednesday, July 19, 2023, Mr Dzoboku said the bank’s exposure to cocoa bills is small and would not significantly impact its ability to make profit for 2023.
“We don’t have any exposure to dollar bonds but we do have exposure to cocoa bills to the tune of GHS 400m, it is a little amount that won’t affect our ability to make profit for this year,” he remarked.
The Ghana Cocoa Board (COCOBOD) has taken a significant step towards optimizing its funding structure by introducing a debt securities exchange programme, according to an official statement released on July 14, 2023.
The initiative aims to invite holders of COCOBOD’s short-term debt securities, known as Cocoa Bills, to voluntarily exchange them for longer-term debt securities with comparatively lower coupon rates.
Under the Exchange Programme, COCOBOD plans to issue longer-term bonds with an aggregate principal amount of approximately GHS 7.93 billion.
These bonds, designed to align with the programme’s terms outlined in a comprehensive set of documents, including an Exchange Memorandum, Trust Deed, and Agency Agreement, are expected to offer improved terms and conditions for investors.
