US$1,130 million pre-export receivables backed trade finance facility

On behalf of Ghana Cocoa Board (the “Borrower” or “COCOBOD”), Coöperatieve Rabobank U.A. (“Rabobank”), Industrial and Commercial Bank of China Limited, London Branch (“ICBC”), MUFG Bank Ltd. (“MUFG”), Natixis (“Natixis”) and Standard Chartered Bank (“Standard Chartered”) (together the “Co-ordinating Initial Mandated Lead Arrangers” or “Co-ordinating IMLAs” or “Co-IMLAs” and “Bookrunners”) and Ghana International Bank plc (“GHIB”) (the "Initial Mandated Lead Arranger” (together with the Bookrunners, the “Arranger Group”) are pleased to announce the official signing and successful closing of COCOBOD’s annual pre-export receivables backed trade finance facility of US$1,130 million (the “Facility”). Proceeds of the Facility will be used to assist COCOBOD in meeting its financing needs for the 2022/2023 cocoa crop and other cocoa-related operations.

The Facility was launched to the market on 23rd August 2022 at a launch amount of USD 1,000 million. Following the close of syndication, COCOBOD elected to upsize the facility to USD 1,130 million as a result of the oversubscription achieved.

Bank of China Limited, London Branch joined the Facility as Senior Mandated Lead Arranger, while DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main and the Arab Bank for Economic Development in Africa (“BADEA”) joined as Mandated Lead Arrangers, Ecobank joined as Arranger, the OPEC Fund, United Bank for Africa PLC, Ahli United Bank B.S.C. and Federated Hermes Inc joined as Lead Managers, AfrAsia Bank Limited, Citibank N.A and Absa Bank Ghana Limited and GCB Bank Plc joined as Managers.

Signing of the Facility is scheduled for 3rd October 2022.

Despite the challenging context for COCOBOD and Ghana this year, the new annual financing for a thirtieth successive year closed successfully with the strong support of its relationship banks and enhanced level of collateralisation and pricing, confirmed the longstanding successful track record of this PXF.

The Ghanaian government confirmed its long-term and continuous support to COCOBOD and to the domestic cocoa industry given the sector's long-standing critical role in the Ghana economy. As a structured performance risk loan lenders continue not to require a sovereign guarantee.

COCOBOD is a Statutory Public Board established in 1947 and is under the responsibility of the Ministry of Food and Agriculture which supervises Ghana’s cocoa industry. In addition to COCOBOD’s principal functions of purchasing, marketing and exporting of cocoa, it also promotes the production of the commodity, focusing on the maximisation of cocoa production and crop yield through agronomic research programmes and major logistic management investment.

Ghana is the second largest producer of cocoa beans in the world, providing about 20% of the world cocoa supply in 2020/21. Cocoa is a strategic commodity for Ghana, being the second largest export revenue generator after gold, and also serves as one of the largest employment-generating sectors at various levels of the value chain.

There are approximately 800,000 farm families (mostly smallholders with less than three hectares) whose livelihood depends on cocoa. The welfare of the cocoa farmer has been improved with the implementation of the Living Income Differential (LID) in the 2020/21 crop season guaranteeing a realistic living income for farmers and thereby ensuring the sustainability of the cocoa trade.

COCOBOD continues to invest in its Productivity Enhancement Program to raise its sustainable trend cocoa crop yield, partly funded by separate pre-export receivables backed rolling crop year term finance. Farmer’s benefit from COCOBOD supported scaling up of artificial/hand pollination, mass pruning, improved pest and disease control, distribution of improved hybrid cocoa seedlings, subsidized fertilizers, local irrigation and technical assistance.