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Market predicts Ghana Cocobod price drop
08 February 2010
Pricing for Ghana Cocobod’s annual pre-export financing looks likely to drop by at least 100 basis points according to a poll conducted by Trade Finance Magazine.
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[Cocobod pre-export financing]
[Ghana Cocobod]
[Cocobod PXF price drop]
Pricing for Ghana Cocobod’s annual pre-export financing (PXF) looks likely to drop by at least 100 basis points over Libor according to a poll conducted by Trade Finance Magazine.
Cocobod enjoyed considerable success in the syndications market last year with its pre-export revolver when it attracted $1.8 billion in commitments from a group of 33 banks. This was eventually scaled back to $1.2 billion. Pricing on last year’s deal increased from 2008’s deal by five fold with the margin set at 250bp and all in pricing set just above 350bp.
The deal is still in its earliest stages, but bankers familiar with the deal have suggested that a price drop is inevitable this year.
Trade Finance posted a open poll on the magazine’s website - www.tradefinancemagazine.com - asking readers how far they considered pricing would drop this year.
Nearly half of all voters, 45%, believed that overall pricing would drop by 100bp, while 27% predicated a 50bp drop. A small number, 9% believed that the deal would drop by half while the remaining 18% voted that the deal would be priced through the floor at "Libor plus lunch".