Completed Mixed AidData Chinese Aid

ICBC contributes to $1.2 billion syndicated receivables-backed trade finance facility to COCOBOD for its 2009/2010 crop season financing needs (Linked to Record ID#92056)

$36.36M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Ghana Cocoa Board (COCOBOD)
Country	Ghana
Start Date	Sep 25, 2009
End Date	Apr 20, 2030
Duration	7,512 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92055`

Grant Description

In 2009, CDB and ICBC contribute to USD 1.2 billion syndicated receivables-backed trade finance facility to COCOBOD for its 2009/2010 crop season financing needs, Ghana On September 25, 2009, a consortium of 33 financial institutions -- including China Development Bank and the Industrial and Commercial Bank of China (ICBC) -- finalized a $1.2 billion receivables-backed trade finance facility (loan) agreement with Ghana Cocoa Board (COCOBOD), a state-owned enterprise and the world's second largest cocoa producer, for purchasing cocoa from farmers during the 2009/2010 crop season.

The 33 participants in the loan syndicate included the Bank of Tokyo-Mitsubishi UFJ, Ltd., Calyon – Crédit Agricole CIB, China Development Bank Corporation, Ghana International Bank plc, ICBC (London) Limited, Natixis, Société Générale Corporate & Investment Banking, Sumitomo Mitsui Banking Corporation, Standard Bank, Standard Chartered Bank, BNP Paribas, HSBC, KFW IPEX Bank GmbH, Nedbank, African Development Bank, Bank of Baroda, Banco Espirito Santo, S.A., BHF-Bank Aktiengesellschaft, FBN Bank (UK) Ltd, WestLB AG, DZ BANK AG, Fortis Bank (Nederland) N.V., Intesa Sanpaolo S.p.A (Paris Branch), Landesbank Baden-Wurttemberg, MediCapital Bank Plc, The OPEC Fund for International Development (OFID), State Bank of India, London Branch, Zenith Bank (UK) Limited, Ecobank Ghana Limited, Ghana Commercial Bank Limited, Mega International Commercial Bank Co., Ltd., National Bank of Kuwait (International) PLC, and Union Bank UK Plc.

ICBC served as the lead arranger of the syndicate.

📋 Loan / Grant Terms

🔁 Repayment Period1 year

The Government of Ghana issued a sovereign guarantee in support of the loan. The loan was also secured by (i.e. collateralized against) receivables from future cocoa sales contracts.

📋 Staff Comments

For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The individual contributions of the banks that participated in the lending syndicate are unknown. For the time being, AidData assumes equal contributions ($36,363,636) across all 33 members of the syndicate, which implies that the total financial commitment from Chinese state-owned banks (the contribution from ICBC captured via Record ID#92055 and the contribution from CDB captured via Record ID#92056) was $72,727,272.
Ghana’s cocoa production is regulated by the Ghana Cocoa Board (COCOBOD), an organization separate from the Ministry of Food and Agriculture that is wholly owned by the Government of Ghana. COCOBOD does not purchase any of the cocoa which is exported, but is responsible for assuring the quality of the product. To ensure the high quality of Ghana’s cocoa exports, the COCOBOD oversees horticulture practices and regulates the use of pesticides and fertilizer. In addition, COCOBOD sets the producer prices for cocoa farmers and, through a subsidiary, oversees the marketing of cocoa. The operations of the COCOBOD are funded through the receipt of a percentage of the revenue received from cocoa exports, but all profits after covering expenses are passed onto the Government of Ghana in the form of export taxes.

📚 Sources & References

Chinese Banks Eye Western Rivals' Turf
工行投资银行惊艳亮相国际资本市场 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.