BOC contributes to $1.7 billion syndicated receivables-backed trade finance facility to COCOBOD for its 2014/2015 crop season financing needs (Linked to Record ID#92554)

📋 Staff Comments

1. 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.
2. The individual contributions of the banks that participated in the lending syndicate are unknown. For the time being, AidData assumes equal contributions ($85 million) across all 20 members of the syndicate, which implies that the total financial commitment from Chinese state-owned banks was $170 million (ICBC's contribution is captured via Record ID#92554 while BOC's via Record ID#92553.
3. 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.
4. In August 2017, COCOBOD told the country’s parliament it was in financial distress due to obligations that included servicing China Eximbank loans for the Bui Dam Construction Project (captured via Record ID#183, ID#30801, ID#30709, and ID#30086).
5. The commitment fee is referred to in the source documentation as a ’35% on interest margin’. AidData has assumed that the 0.575% flat (upfront) fee is functionally equivalent to a management fee.
6. The security margin is the assignment of cocoa contracts for 110% of the facility amount.
7. This loan came with an additional $200 million available on demand for re-drawing from April 2015 to May 2015 for the light crop season.

📚 Sources & References

• Ghana's COCOBOD secures 2014/2015 PXF
• COCOBOD gets US$1.7 billion facility for cocoa purchase
• THE REPUBLIC OF GHANA US$1,000,000,000 10.750 per cent. Amortising Notes due 2030 Partially guaranteed by the INTERNATIONAL DEVELOPMENT ASSOCIATION Issue Price: 100.00 per cent
• Ghana’s cocoa cash injection
• Deal Overview
• NA
• Ghana Cocobod signs annual PXF oversubscribed with options 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.