GHANA COCOA BOARD SECURES US650M RECEIVABLES – BACKED PRE-EXPORT FINANCE TERM LOAN FACILITY FOR 2003/2004 COCOA PURCHASES

An amount of US$650M Receivables-Backed Pre-Export Finance Term Loan has been secured by the Ghana Cocoa Board to purchase cocoa for the 2003/2004 cocoa season.

The facility, the highest in the history of the Board and repayable within a year, was arranged by four leading banks. These were the Barclays Bank PLC, Royal Bank of Scotland PLC, Standard Chartered Bank and NATEXIS Banques Populaires.

The loan is the 11th successive loan facility provided by the participating international financial banks in the syndication. A similar syndication arrangement last year raised an amount of US$420M.

At a signing ceremony in London yesterday, at which Nana Addo Dankwa Akufo-Addo, Minister of Foreign Affairs, Mr. Isaac Osei, Ghana’s High Commissioner to the UK, Mr. Kwabena Baah-Duodu, Deputy High Commissioner and Mr. Kwame Sarpong, Chief Executive of the Bank were present, representatives of the 28 banks in this year’s syndication praised the Ghana Cocoa Board for promptly honouring their loan obligations over the years.

They also commended Ghana for producing consistently high quality cocoa which continued to command a high price premium on the world market.

Mr Dominic Bruynseels, Managing Director of Barclays Africa welcomed the participation of new banks in the syndication loan facility including two local banks, namely ECOBANK and SSB BANK.

He said that Barclays Bank was proud to be associated with Ghana for the past 80 years, and to, among other things, finance cocoa production at the local farm level.

Mr Christopher Keljik Group Executive Director, Standard Chartered Bank described the loan as the largest and most successful non-oil related transaction in sub-Saharan Africa.

He said through the loan, the Cocoa Board had achieved over subscription of more than 45%, attracting new banks and commitments well in excess of the US?500m originally sought.

According to him, the feat had been achieved against a challenging background of a market that was still weary of political instability in other parts of Africa and, of course, the recent turmoil in Iraq.

He said the continuing success of the transaction was a matter of great joy for all participating banks.

Mr. Keljik said the loan facility was a testimony to the Ghana Cocoa Board’s ‘domestic and international standing’ and a continuing tribute to the relationship the Cocoa Board enjoyed with the banks.

“It is also a re-affirmation of not only the international perception of the Ghana Cocoa Board as a professional organisation with impressive track record but also a continuing acknowledgement of the Republic of Ghana as a politically and economically stable country,” he added.

Mr. Kwame Sarpong congratulated the arrangers, Messrs Barclays Bank Plc, Standard Chartered Bank, NATEXIS Banque Populaires and the Royal Bank of Scotland, for not only winning the mandate this year, but also demonstrating their ability to arrange the syndication for it to be over subscribed.

He said by the facility, the Banks’ confidence in Ghana Cocoa Board in particular and the economy of Ghana in general had not been misplaced and added that the Board’s hard-won reputation as a first class borrower would not only be maintained but jealously guarded.

He acknowledged the sacrifice, hard-work and commitment of cocoa farmers which had resulted in the production of good quality cocoa and enabled the Board to enter into business transactions in their interests.

He commended and thanked the nation’s anti-smuggling campaign programme which had made it possible to stem smuggling in the current year and appealed to the country’s farmers to continue to sell all their cocoa to COCOBOD through the local buying companies (LBCs) in future.

“Our thanks also go to all the licensed cocoa buying companies, registered cocoa haulers and other institutions in the local trade in Ghana. Finally, we recognise Government support through the Ministry of Finance and the Bank of Ghana with whom we work closely towards the overall goal of improving the Ghanaian economy,” he added.

In his remarks, Mr. Osei said the Government was determined to provide the necessary conducive environment for the farmers not only to increase total production but also to earn more from the same acreage under cultivation through increased productivity.

Mr Osei said the facility would make it possible for farmers to receive timely payment for their hard-work while injecting the much needed capital into the economy.

He said the success story of the cocoa industry buttressed the view of the NPP Government in the ability of the private sector to spearhead Ghana’s aspirations to build a strong economy.

Mr Osei took the opportunity to invite the bankers to invest in other sectors of the economy.

“Ghana today offers many opportunities for investment and it is our hope that on the back of this historically successful short-term facility, this club of bankers will show its commitment to Ghana by looking beyond this annual event at other areas of our economy,” he said.

He appealed to the bankers to organise next year’s signing ceremony in Accra where they would enjoy the traditional Ghanaian hospitality and experience the country in a way which perhaps would move them to “forge new mutually beneficial relationships”.

“In Ghana you will find a leadership with a Government which is accountable and incorruptible. You will find a democracy underpinned by the rule of law. You will find a country giving the private sector the predominant role in ushering our country into a Golden Age of Business,” he said.