Cedi depreciation to reduce as BoG receives $790 million of cocoa syndicated loan

Reports have indicated that the Bank of Ghana received the $790 million of the Cocoa Syndicated loan on October 29, 2022.

According to a myjoyonline.com report, the cedi equivalent will be given to cocoa farmers for the purchase of cocoa beans.

Ghana in recent times has had to rely on foreign currency to shore up its reserves in a bid to control the cedi’s depreciation.

The cedi’s depreciation slowed down in the course of the week to sell at GH¢13.10 but has risen to GH¢13.85.

However, the second tranche of about $340 million, which will be spread over three months will come in between November 2022 and February 2023. Interest to be paid on the facility is 1.75%.

The Standard Chartered Bank, Coöperatieve Rabobank, Industrial and Commercial Bank of China (ICBC), MUFG Bank Ltd, Natixis, and Ghana International Bank plc were the Initial Mandated Lead Arrangers for the facility.

The London branch of Bank of China Limited 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.

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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, whilst AfrAsia Bank Limited, Citibank N.A, Absa Bank Ghana Limited, and GCB Bank Plc were joined as managers.