The Ghana Cocoa Board (COCOBOD) has raised GH¢3.39 billion from the first tranche of its new Commercial Paper programme, falling GH¢610 million short of the GH¢4 billion target set for the initial issue.
The funds were raised last week through Cocoa Capital PLC, a wholly owned special-purpose vehicle established by COCOBOD to mobilise financing from the domestic capital market.
Sources familiar with the transaction said investors in the first tranche will earn an interest rate of 11 percent, with the Commercial Paper carrying a maturity of 266 days.
The outcome represents about 85 percent of the amount targeted under the first tranche of the programme.
It remains unclear whether COCOBOD has secured alternative financing to make up the shortfall or whether the balance will be incorporated into subsequent fund-raising efforts.
The transaction forms part of COCOBOD’s broader GH¢16.3 billion Domestic Cocoa Notes Programme, designed to provide financing for cocoa purchases while addressing the organisation’s legacy debt obligations.
GH¢16.3bn financing programme
Under the programme, Cocoa Capital PLC plans to raise up to GH¢14 billion through Commercial Papers to meet COCOBOD’s short-term liquidity requirements for cocoa purchases during the 2026/27 crop season.
A further GH¢2.3 billion is expected to be raised through medium- to long-term bonds to refinance existing COCOBOD legacy debt.
The Commercial Paper component is being structured in three tranches, with the first and second targeting GH¢4 billion each and the final tranche targeting GH¢6 billion.
The actual timing and size of subsequent issuances will depend on COCOBOD’s financing needs, market conditions and the terms of the programme.
About 14 percent of the funds raised is expected to be applied towards COCOBOD’s legacy obligations.
Cocoa sales to back financing
The repayment of obligations under the programme will be supported by receivables from selected cocoa forward sales contracts assigned to Cocoa Capital PLC.
Proceeds from the contracts will be channelled through designated ring-fenced accounts maintained with appointed account banks.
The funds will subsequently be applied according to an agreed payment waterfall, a structure intended to provide investors with greater assurance over the management and repayment of the securities.
Absa Bank Ghana, CalBank, Fincap Securities, GCB Bank, One Africa Securities and Stanbic Bank Ghana are serving as bookrunners for the programme.
New vehicle for cocoa financing
Cocoa Capital PLC was incorporated on August 7, 2026, under the Companies Act, 2019, and is wholly owned by COCOBOD.
The company has an initial paid-up capital of GH¢5 million and was established primarily to raise and deploy funds for approved cocoa-sector financing and refinancing activities.
The creation of the special-purpose vehicle forms part of efforts to give COCOBOD a dedicated platform for accessing the domestic debt capital market and reducing reliance on traditional funding arrangements.
The Securities and Exchange Commission has approved the programme, which COCOBOD says forms part of wider reforms to establish a more sustainable financing model for the cocoa sector.
The reforms are intended to ensure timely financing for cocoa purchases, address legacy financial obligations and improve financial discipline within the sector.
COCOBOD has described the initiative as a significant step towards building a more resilient and financially sustainable cocoa industry capable of delivering long-term value to farmers and other stakeholders.
Source: Myjoyonline
