COCOBOD signs new $300m facility to boost cocoa production
Ghana Cocoa Board (“Cocobod”) has signed a new 3-year receivables-backed trade finance facility of US$300m.
The Facility will be used to refinance Cocoa Bills raised by Bank of Ghana on behalf of COCOBOD and/or to finance production enhancement programmes.
COCOBOD represents various interests of the Ghanaian cocoa industry.
It was established in 1947 with the mission to facilitate the production, processing and marketing of good quality cocoa, coffee and shea nut.
After Ivory Coast, Ghana is the world’s second-largest cocoa exporter.
“To ensure sustainability of the cocoa economy in Ghana, COCOBOD continues to institute several strategies, projects and programmes that seek to ensure good agronomic practices to preserve the fragile tropical ecosystem, improve labour practices and conditions as well as the livelihoods of farmers including women and children,” a statement from COCOBOD stated.
The statement said, in order to achieve greater strides in these objectives, COCOBOD has chosen to include environmental and social objectives in the credit agreement agreed with the Arranging Group.
“This is aimed at promoting environmentally friendly cocoa production and Increasing sensitivity to child labour as well as Empowering women.”
COCOBOD explained that “the facility will pay an initial margin of 295bps p.a. over USD LIBOR and will include a margin incentive mechanism subject to the achievement of the above-mentioned environmental and socials objectives.”