A confidential banking document has emerged to challenge claims that the previous government failed to repay a major cocoa syndication loan, providing formal evidence that the 2023/24 cocoa season trade finance facility was fully repaid and properly discharged.

The document, issued by Standard Chartered Bank in its capacity as Facility Agent, confirms the complete settlement of an $800 million receivables-backed trade finance facility arranged for the purchase of cocoa in Ghana.

The discharge letter, dated September 13, 2024, was formally addressed to the Cocoa Marketing Company (Ghana) Limited (CMC) at Cocoa House in Accra, as well as all approved purchasers under the facility agreement.

The letter relates to the USD 800 million Receivables-Backed Trade Finance Facility Agreement signed on December 12, 2023, between the Ghana Cocoa Board (COCOBOD) and its financing partners, with Standard Chartered Bank serving as the Facility Agent.

In the official communication, Standard Chartered Bank states unequivocally that the Facility Agreement terminated on August 30, 2024, “due to a full repayment.”

The bank further confirms that “all amounts outstanding under the Facility Agreement and the other Documents… have been paid and discharged in full,” adding that the associated Security Period has also expired.

This language, in standard financial and legal terms, signifies the complete fulfilment of all obligations under the facility, leaving no residual liabilities tied to the agreement.

Beyond the repayment of the principal facility, the letter also confirms that all associated fees were fully settled, stating that “all fees have been paid therefore no other outstanding payments are due.”

In addition, the bank formally released all un-serviced 2023/2024 cocoa contracts that had been assigned to the Facility Agent, transferring them back to the Cocoa Marketing Company (Ghana) Limited.

This release effectively restores full control of those contracts to CMC, further underscoring the closure of the transaction.

The document is signed by Valdeep Singh, Director of the Transaction Management Group at Standard Chartered Bank, in his official capacity as representative of the Facility Agent.

As an internationally recognized financial institution and lead arranger in syndicated trade finance, Standard Chartered’s confirmation carries significant credibility in global financial markets.

The emergence of this discharge letter comes against the backdrop of intense political and public debate over the financial state of COCOBOD and claims that previous administrations left behind unpaid syndication loans and unresolved cocoa financing obligations. In recent weeks, allegations have circulated suggesting that past governments failed to repay cocoa financing facilities, contributing to current liquidity challenges in the cocoa sector.

However, the contents of the Standard Chartered letter directly contradict those claims in relation to the 2023/24 season facility.

The confirmation of full repayment, settlement of all fees, and release of contracts provides documentary evidence that the specific $800 million trade finance arrangement was properly concluded before the change of government.

Historically, syndication and receivables-backed trade finance facilities have been central to Ghana’s cocoa marketing system, enabling COCOBOD and the Cocoa Marketing Company to pre-finance cocoa purchases from farmers and Licensed Buying Companies ahead of export sales.

These facilities are typically structured with strict repayment schedules, security arrangements, and oversight by international banks acting as facility agents.

Discharge letters, such as the one issued by Standard Chartered, are standard instruments used to formally certify the closure of such agreements.

In the context of the current cocoa sector crisis—marked by payment delays to farmers, funding pressures on licensed buying companies, and public debate over COCOBOD’s finances—the document adds a new layer to the national conversation. It suggests that, at least with respect to the 2023/24 cocoa season’s $800 million receivables-backed facility, the narrative of non-repayment does not hold.