{"id":1209066,"date":"2022-09-22T12:01:31","date_gmt":"2022-09-22T12:01:31","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/09\/22\/cocobod-will-not-default-in-repaying-loans-syndicated-loan-to-be-successful-redd-intelligence\/"},"modified":"2022-09-22T12:01:31","modified_gmt":"2022-09-22T12:01:31","slug":"cocobod-will-not-default-in-repaying-loans-syndicated-loan-to-be-successful-redd-intelligence","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/09\/22\/cocobod-will-not-default-in-repaying-loans-syndicated-loan-to-be-successful-redd-intelligence\/","title":{"rendered":"COCOBOD will not default in repaying loans; Syndicated Loan to be successful – Redd Intelligence"},"content":{"rendered":"

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Despite the escalating debt woes of Ghana, Ghana Cocoa Board (COCOBOD) is still expected to attract international banks to its annual one-year pre-export finance (PXF) or otherwise the Cocoa Syndicated Loan.<\/p>\n

According to international research firm, Redd Intelligence, it is almost impossible for COCOBOD to default.<\/p>\n

Defaulting on Cocobod\u2019s \u201cflagship financing\u201d is \u201calmost impossible,\u201d commented Tedd George, founder of Africa-focused advisory firm, Kleos Advisory.<\/p>\n

\u201cIt\u2019s a low-risk African agricultural asset that you want on your books,\u201d said George, adding, it is the only deal in Ghana that some banks will do.<\/p>\n

The company has consistently raised a PXF syndicated facility on an annual basis ever since 1992, never defaulting and sometimes even paying early.<\/p>\n

Mr. George explained that \u201cthe government will do everything in its power to get the facility repaid\u201d.<\/p>\n

\u201cIt might even repay [COCOBOD] before it repays the IMF, and the IMF might even support this.\u201d<\/p>\n

All eyes on pricing of deal<\/strong><\/p>\n

Redd Intelligence, which is based in Singapore, pointed out that all eyes will be on the pricing of this year\u2019s deal, which already tends to generate \u201cpretty poor returns on US dollars\u201d.<\/p>\n

Last year\u2019s PXF, which\u00a0raised $1.5 billion, paid a margin of 1.1 percentage points over Libor, considerably tighter than the 2020 deal which landed at +175 basis points<\/p>\n

This year\u2019s transaction, Redd Intelligence, said will instead be pegged against the Secured Overnight Financing Rate (SOFR) rate and will \u201cdefinitely\u201d pay a higher rate than last year\u2019s deal, given the current climate.<\/p>\n

The deal is still in general syndication and will most likely be signed by the end of this month.<\/p>\n

Ghana International Bank, ICBC, Mitsubishi UFJ Financial Group (MUFG), Natixis, Rabobank and Standard Chartered are coordinating the one-year facility.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Despite the escalating debt woes of Ghana, Ghana Cocoa Board (COCOBOD) is still expected to attract international banks to its annual one-year pre-export finance (PXF) or otherwise the Cocoa Syndicated Loan. According to international research firm, Redd Intelligence, it is almost impossible for COCOBOD to default. Defaulting on Cocobod\u2019s \u201cflagship financing\u201d is \u201calmost impossible,\u201d commented […]<\/p>\n","protected":false},"author":1,"featured_media":1209067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[182,20966,6200,659,4184,26125,26126,2134,6001],"class_list":["post-1209066","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-cocobod","tag-default","tag-intelligence","tag-loan","tag-loans","tag-redd","tag-repaying","tag-successful","tag-syndicated"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1209066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1209066"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1209066\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1209066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1209066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1209066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}