Ghana, the world's second largest cocoa producer after Côte d'Ivoire, uses an annual syndicated loan to finance bean purchases from farmers. Usually concluded at the start of the season in September, this year's loan was delayed.

The Ghana Cocoa Marketing Board COCOBOD plans to finalize an 800 million dollar syndicated loan with banks by the end of the month and will pay interest of nearly 8%, reflecting tighter credit conditions, an office official said on Tuesday. The Ghanaian parliament gave the green light to the transaction last week, allowing the board to finalize the documents with the participating banks

These banks should include the Dutch Rabobank Bank, the Industrial and Commercial Bank of China, the French banks Société Générale and Natixis, and the British Standard Chartered Bank, according to a memorandum that COCOBOD submitted to parliament earlier this month. In total, COCOBOD plans to borrow $1.2 billion this season, of which $800 million will come from the syndicate of lenders and the remaining $400 million will be raised from other sources, as previously reported by the board

The syndicated loan will cover the purchase of 47% of the expected production for the season, or 850,000 tons, according to the Finance Committee report.