The Ghana Cocoa Board (COCOBOD), through its wholly owned special-purpose vehicle, Cocoa Capital PLC, has raised GH¢3.39 billion from the first tranche of its Commercial Paper programme.
The amount, raised last week, fell short of the GH¢4 billion initially targeted for the first tranche.
It is not immediately clear whether COCOBOD or Cocoa Capital PLC intends to secure additional financing to cover the shortfall.
Investors who participated in the offer are expected to earn an 11 per cent interest rate, with the Commercial Paper carrying a tenor of 266 days.
GH¢16.3bn Cocoa Financing Programme
The issuance forms part of a broader GH¢16.3 billion Domestic Cocoa Notes Programme being undertaken by Cocoa Capital PLC to finance cocoa purchases and strengthen the sector’s financial position.
Under the programme, GH¢14 billion is expected to be raised through Commercial Papers to meet short-term liquidity requirements for cocoa purchases during the 2026/27 crop season.
The remaining GH¢2.3 billion is expected to be mobilised through medium- to long-term bonds to refinance existing COCOBOD legacy debt.
The GH¢14 billion Commercial Paper component is being issued in three tranches, with the first and second tranches targeting GH¢4 billion each and the final tranche targeting GH¢6 billion.
The timing and actual amount of subsequent issuances will depend on COCOBOD’s financing requirements, prevailing market conditions and the terms governing the programme.
Repayment Structure
Repayment obligations under the programme will be backed by receivables from selected executed cocoa forward sales contracts assigned to Cocoa Capital PLC.
Proceeds from the contracts will be channelled through designated ring-fenced accounts held with appointed banks and applied according to the programme’s agreed payment structure.
The arrangement is intended to provide additional assurance to investors over the management and repayment of funds raised under the programme.
About 14 per cent of the funds raised will also be used to finance COCOBOD’s legacy debts.
The bookrunners for the programme are Absa Bank Ghana Ltd, CalBank PLC, Fincap Securities Ltd, GCB Bank PLC, One Africa Securities Ltd and Stanbic Bank Ghana Ltd.
Cocoa Capital PLC
Cocoa Capital PLC was incorporated on August 7, 2026, under the Companies Act, 2019, as a dedicated vehicle for COCOBOD’s domestic fundraising programme.
Wholly owned by COCOBOD, the company has an initial paid-up capital of GH¢5 million.
Its principal mandate is to raise funds and deploy the proceeds towards approved financing and refinancing activities within Ghana’s cocoa sector.
The arrangement provides COCOBOD with a dedicated vehicle to access Ghana’s domestic capital market under the Cocoa Notes Programme.
Cocoa Capital PLC has also secured approval from the Securities and Exchange Commission (SEC) to raise funds through the domestic debt capital market.
New Cocoa Financing Model
The Domestic Cocoa Notes Programme forms part of efforts to restructure the financing of Ghana’s cocoa sector and establish a more sustainable mechanism for funding cocoa purchases and addressing legacy obligations.
The programme is expected to provide liquidity for timely cocoa purchases while strengthening financial discipline within the sector.
COCOBOD has described the financing arrangement as part of ongoing reforms aimed at building a more resilient and financially sustainable cocoa industry.
“This turnaround signals a cocoa sector that is more resilient, disciplined, and built to deliver value at every level,” COCOBOD told investors.
The cocoa regulator maintains that the reforms are intended to strengthen the sector and position cocoa as a long-term driver of shared prosperity.
Source: Joy Business
