Ghana main cocoa buyer secures cheaper credit line for purchases
Author: Reuters | Mar 11 2014 at 09:58 AM | Category: Liner Shipping
Ghana’s largest cocoa buyer Produce Buying Company (PBC) is set to raise $75 million from a private lender in a bid to fund purchases more cheaply, its managing director said on Tuesday.
The revolving credit is to be granted at the start of each cocoa season under terms more favourable than those to which the company was previously subject, Kojo Atta-Krah said, declining to name the lender.
PBC spent 46 percent of gross profits last year on borrowing.
“It is a cheaper credit and not more than a quarter of what we pay to the banks currently, and with this the greatest ill confronting the company would have been eliminated,” he told reporters and analysts in Accra.
He said there were also plans to also raise capital through a rights issue this year but did not provide details.
Ghana is the world’s second biggest cocoa producer after Ivory Coast and PBC currently buys around 35.3 percent of Ghana’s total annual crop output.
The country will produce more cocoa in the 2013/14 season than previously expected, with its main crop harvest now estimated at 850,000 tonnes, the deputy head of its Cocobod regulator said last month.