United Bank for Africa, America (UBA America) has partnered other banks to arrange a US$1.3billion syndicated loan to purchase cocoa beans by Ghana Cocoa Board (COCOBOD) in the 2020/2021 crop season.
According to a statement from COCOBOD, UBA America – as one of the participants in the syndication – partnered other financial institutions such as the ABN Amro Bank, Cooperative Rabobank UA, DZ Bank AG Deutsche, Industrial and Commercial Bank of China Limited, and the Commerzbank Aktiengesellschaft.
The loan agreement was signed on Tuesday 29 September 2020 through a virtual ceremony. The loan will be used to purchase an estimated 900,000 metric tonnes of cocoa beans from farmers through the Licenced Buying Companies (LBCs) for the 2020/2021 cocoa season.
Commenting on the loan, MD/CEO of UBA Ghana, Olalekan Balogun, praised the management of COCOBOD for working efficiently to secure the future of farmers with the introduction of various schemes to support them. He said UBA will continue offering support for the cocoa sector to ensure its total development.
Minister of Food and Agriculture, Dr. Owusu-Afriyie Akoto, thanked the financial institutions for their interest – stressing that the loan facility will help the country to achieve its production targets.