The Ghana Cocoa Board (COCOBOD) has just signed a $1 billion financing deal with a syndicate of international banks to finance cocoa buying for the 2008/09 cocoa season. The bank consortium includes both European and Japanese banks and is believed to be the largest soft commodity financing deal ever.
Readers of this blog will recall my analysis of financial flows that make the Kuapa Kokoo cooperative work (April 16th). The flow chart showed that the cooperative, as a licensed cocoa buyer, reports its anticipated target capacity to COCOBOD and then receives (as loans) the necessary funds to cover the buying of the cocoa from the farmers.
Continue reading “Ghana Secures Financing for 2008/09 Cocoa Season”
