The Ghana Cocoa Board, through its wholly owned financing vehicle, Cocoa Capital PLC, has mobilised GH¢3.39 billion from the first tranche of its Commercial Paper programme, providing fresh domestic funding for cocoa purchases and related sector financing.
The amount was secured last week following the conclusion of the initial offer, according to persons familiar with the transaction. However, the proceeds fell short of the GH¢4 billion that had been earmarked for the first tranche, leaving a funding gap of about GH¢610 million. Joy Business reports that it remains unclear whether COCOBOD or Cocoa Capital PLC has arrangements to raise additional funds to make up the shortfall.
Investors who participated in the offer are expected to earn an interest rate of 11 per cent, with the Commercial Paper carrying a tenor of 266 days, according to information cited by Joy Business.
The transaction forms part of a much larger domestic financing initiative under which Cocoa Capital PLC is seeking to mobilise up to GH¢16.3 billion through the Domestic Cocoa Notes Programme. The programme is designed to provide financing for cocoa purchases while also addressing existing financial obligations within the cocoa sector.
Under the broader programme, GH¢14 billion is earmarked for Commercial Paper issuance to provide short term liquidity for cocoa purchases during the 2026/27 crop season, while another GH¢2.3 billion is expected to be mobilised through medium and long term bonds to refinance approved COCOBOD legacy obligations.
The Commercial Paper component is being arranged in separate tranches so that the timing and size of each issuance can correspond with COCOBOD’s financing requirements and prevailing market conditions. Cocoa Capital PLC’s official programme information confirms that its Commercial Paper may carry maturities ranging from 15 days to as much as 270 days.
The financing structure represents a significant change in the manner in which cocoa purchases are being funded. Rather than relying solely on traditional external financing arrangements, the new framework is designed to deepen COCOBOD’s access to Ghana’s domestic debt capital market and mobilise resources from local institutional investors and other eligible market participants.
Repayment under the programme is structured around receivables generated from selected executed cocoa forward sales contracts that have been assigned to Cocoa Capital PLC. The proceeds from those contracts are to be channelled through designated ring fenced accounts maintained with appointed account banks before being applied according to the established payment structure.
The arrangement is intended to establish a controlled mechanism through which funds raised from investors are received, administered and ultimately applied to approved cocoa sector financing purposes. Cocoa Capital PLC says proceeds from Commercial Paper are intended to support payments relating to cocoa beans delivered by Licensed Buying Companies, while bond proceeds may be applied towards approved refinancing obligations.
The programme has received approval from the Securities and Exchange Commission for fundraising through Ghana’s domestic debt capital market. The securities are also structured for listing on the Ghana Fixed Income Market, providing a formal capital market platform for the programme.
Cocoa Capital PLC was established as a dedicated special purpose vehicle by COCOBOD to undertake the financing arrangements associated with the programme. The company is wholly owned by COCOBOD and its principal mandate is to raise funds through Commercial Paper and bonds for approved cocoa sector financing and refinancing purposes, while administering the associated payment, reporting and compliance obligations.
The company’s creation gives COCOBOD a dedicated corporate structure through which it can access domestic investors and manage financing raised under the GH¢16.3 billion programme. Its financing activities are restricted to the approved cocoa sector purposes outlined under the note issuance framework.
The programme is being coordinated by Absa Bank Ghana Limited, CalBank PLC, Fincap Securities Limited, GCB Bank PLC, One Africa Securities Limited and Stanbic Bank Ghana Limited, which are serving as the joint lead managers and bookrunners for the transaction.
The GH¢3.39 billion raised through the first Commercial Paper tranche therefore represents the initial mobilisation under a much broader financing framework intended to support cocoa procurement while restructuring aspects of COCOBOD’s existing financial obligations. The government and COCOBOD have presented the initiative as part of wider efforts to establish a more sustainable financing structure for the cocoa industry.
COCOBOD has described the financing initiative as part of the ongoing restructuring of the cocoa sector, with the objective of improving financial discipline, ensuring the availability of funds for timely cocoa purchases and strengthening the long term sustainability of the industry.
The latest fundraising nevertheless leaves the first tranche below its original GH¢4 billion objective, meaning that attention will now turn to how the remaining financing requirement is addressed and how subsequent tranches perform as COCOBOD proceeds with its broader GH¢16.3 billion domestic capital market programme.
