Ghana's Cocoa Marketing Board (COCOBOD) has finalized an $800 million syndicated loan with banks, and it anticipates accessing the initial $600 million as early as this week, according to the deputy chief executive officer, per reports from Reuters.

The annual syndicated loan is a crucial funding source for Ghana, the world's second-largest cocoa producer, supporting bean purchases from farmers.

Delays in reaching this year's agreement were attributed to Ghana's severe economic crisis and efforts to restructure its bilateral and commercial debts.

“I joined COCOBOD in 2018 and this is the hardest transaction we have had,” COCOBOD Deputy CEO Ray Ankrah told Reuters.

“It’s been signed and we are working on the drawdown. We’re drawing down $600 million by the end of this week and we expect to draw down the $200 (million) in the middle to the end of January,” he said, adding that the terms of the loan had not changed from those presented to parliament last month.

In November, Ghana's parliament approved the transaction, allowing the Cocoa Marketing Board (COCOBOD) to finalize paperwork with participating banks for an $800 million syndicated loan.

The terms include an interest rate of nearly 8%, comprising the one-month Secured Overnight Financing Rate (SOFR) at approximately 5.3% and a margin of 2.65%.

The drawdown of the initial $600 million this week is expected to bolster Ghana's reserves, potentially supporting the local cedi by reducing demand for dollars amid slow progress in restructuring bilateral debt.

Ghana and Ivory Coast are anticipating smaller cocoa crops due to adverse weather conditions, with COCOBOD officially forecasting about 800,000 tons for the 2023/24 season.

However, industry sources estimate Ghana's harvest will be closer to 600,000 tons. The $800 million loan is considered one of the lowest in a decade, and COCOBOD plans to capitalize on record-high global cocoa prices by selling part of the country's crop on the spot market.