Standard Chartered is joint lead-arranger for a USD1billion syndicated facility for the Ghana Cocoa Board (Cocobod)
Ghana, September 3 2008 – Standard Chartered and a group of joint Initial Mandated Lead Arrangers (“IMLAs”) including the Bank of Tokyo-Mitsubishi UFJ Ltd, Dresdner Kleinwort, Ghana International Bank, Natixis, Societe Generale Corporate and Investment Banking and Sumitomo Mitsui Banking Corporation, have announced that the Ghana Cocoa Board (Cocobod) USD1billion Receivables-Backed Trade Finance Facility for the 2008/09 cocoa season was successfully signed in Accra on Wednesday 3 September 2008.
This syndicated facility is to provide financing for pre-export purchases of cocoa beans for the 2008/2009 season, and will be fully secured at all times by the assignment of firm and fixed price contracts from acceptable buyers from OECD countries, and by the assignment of the off-shore collection account with Ghana International Bank plc, London.
The syndication bookrunners were Bank of Tokyo-Mitsubishi UFJ Ltd, Dresdner Kleinwort, Natixis, Societe Generale Corporate and Investment Banking and Standard Chartered Bank.
The syndication was closed at the end of August and was significantly oversubscribed from the USD900 milion originally sought. Whilst the Borrower elected to an increase in the transaction size, the 24 participating banks in the loan were scaled back due to the high level of appetite displayed in the market.
Commenting, Mr. Isaac Osei, Chief Executive Officer of Cocobod, said: “This transaction is the largest structured soft commodity syndicated deal in Africa. The pool of banks – both Ghanaian and international financial institutions, some with a local presence – includes those with a long-standing relationship with Cocobod as well as new banks. They all contributed to making this 2008 facility a success.
Since 1993, COCOBOD has used syndicated pre-export finance and repayment history under this annual crop finance facility has been impeccable. It is the premier soft commodity transaction in Sub-Saharan Africa.”
The 2007/08 annual crop pre-export facility was also over-subscribed after the initial request of USD740 million, bringing the total syndicated amount for 2006/07 to USD 810 million.
Cocoa is the second largest export earner to Ghana and is therefore of significant socio-economic importance to the country. Over the past few years, Ghana has been the world’s 2nd largest cocoa producer after Ivory Coast, accounting for about 18% of world traded cocoa bean volume in the 2007-08 crop season. Ghana’s cocoa is superior in quality and trades at about 10% premium on Global Cocoa exchanges.
This is the 16th successive year that Standard Chartered has arranged a facility for the Ghana Cocoa Board - servicing the country’s entire cocoa industry in deals worth over USD 5bn.
Commenting, Ebby Essoka, CEO, SCB West & Central Africa, said: “Today’s signing is yet another milestone in Cocobod’s journey and I am certain a future based on the twin principles of Partnership and Sustainability will ensure the continuation of a very positive and exciting journey.
Cocobod is Courageous, Responsive, International, Creative and Trustworthy. These values are at the centre of Standard Chartered’s brand promise of being “the Right Partner, leading by example.”
This has been one of the objectives of this country and it has been achieved because of the contribution of Companies such as Cocobod and of course Standard Chartered Bank Ghana Limited. We are proud to be at the centre of the financial services sector of Ghana.”
As the premier Bank, Standard Chartered’s 112-year history in Ghana has seen it playing the Central Bank role at some point and has been instrumental in the export sector since the pre-independence era. The Bank has carried on this responsibility through the years, leading the way in Ghana’s economic rebirth by providing support in all the hot spots of the economy including agriculture, export funding, road construction, helping businesses grow, education, community development and developing the people of Ghana.
The Ghana Cocoa Board (Cocobod) is a Statutory Public Board established by Ordinance in 1947 to purchase market and export cocoa, and to develop and encourage the production of this commodity. Cocobod has a subsidiary and five major divisions whose operations fall into three broad categories, namely: the Pre-harvest Sector, Post-harvest Sector and Support Services. Through these bodies, Cocobod provides all the services necessary for commercialising cocoa production in Ghana.
Cocobod is the only mandated off-taker of cocoa in the country from the LBCs and regulates them at the same time. It on-lends the funds raised through the syndication to the LBCs against payment guarantees provided by the LBCs from various banks, including SCB, Ghana. The top four LBCs in Ghana, i.e Produce Buying Company Limited, Akuafo Adamfo, OLAM Company Ltd and Armajaro Company Ltd. have various facilities from Standard Chartered Ghana to support their operations.
Standard Chartered is the only international bank in Ghana with a strong presence in Africa, Asia and the Middle East, thus its ability to deliver world-class financial services to the growing trade and investment between these regions. The Bank was the first to arrange the issue of a USD45m Eurobond for AfDB in Ghana and remains the highest priced stock on the Ghana Stock Exchange at GHS38.00 per share.
For more information, please contact:
Nii Okai NunooArea Head of Corporate Affairs, West Africa
Tel: +233(0)21 669688 Fax: +233 (0) 21 661676
Nii-Okai.Nunoo@standardchartered.com