Ghana Cocoa Board (COCOBOD) has raised GH¢3.396 billion from domestic institutional investors through the maiden commercial paper issuance of Cocoa Capital PLC, as the Board moves to reduce its reliance on external borrowing to finance cocoa purchases.
The issuance forms part of a GH¢16.3 billion Domestic Cocoa Notes Programme established through Cocoa Capital PLC, a wholly owned subsidiary of COCOBOD, to mobilise funds from Ghana’s domestic capital market.
The programme comprises GH¢14 billion in commercial paper to finance cocoa purchases and GH¢2.3 billion in bonds intended to refinance existing cocoa-sector debt.
The inaugural issuance, known as Series 1 (Tranche 1), has been admitted to the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange, marking a significant step towards establishing a domestic financing framework for the cocoa industry.
In his address at the listing, COCOBOD Chief Executive, Dr Ransford Anertey Abbey described the initiative as a departure from financing arrangements that have historically relied on government budget allocations, offshore syndicated loans and buyer pre-financing.
He said cocoa purchases over the past three decades had depended substantially on external borrowing, making it necessary to explore a broader and more sustainable financing approach.
According to Dr Abbey, the new model is designed to mobilise domestic liquidity, reduce dependence on offshore borrowing and strengthen the relationship between Ghana’s capital market and the cocoa sector.
The maiden issuance attracted bids of approximately GH¢3.586 billion from 38 institutional investors, with GH¢3.396 billion accepted at a clearing yield of 11%, according to reported transaction details.
Dr Abbey said proceeds from the first series would provide working capital for cocoa purchases during the 2026/27 crop season.
He said the initiative was intended to strengthen COCOBOD’s financial foundations while ensuring that the benefits of the financing arrangement reach cocoa farmers, whose incomes depend on timely payments for their produce.
The Chief Executive also pledged financial discipline, transparency and accountability in the management of the funds, alongside compliance with reporting requirements and debt-service obligations.
He expressed appreciation to the government, financial regulators, market institutions, transaction advisers and participating investors for their roles in bringing the issuance to market.
By Eric Egbeta
