The Ghana Cocoa Board (COCOBOD) has successfully raised GH¢3.39 billion through its wholly owned special-purpose vehicle, Cocoa Capital PLC, in the first tranche of its Commercial Paper (CP) programme. This development was confirmed by sources familiar with the outcome of the offer. The amount raised falls short of the initial target of GH¢4 billion set for the first tranche.
The funds raised will be used to support cocoa purchases and strengthen the cocoa sector's financial position. Investors who participated in the offer will receive an interest rate of 11%, with the Commercial Paper having a tenor of 266 days. The programme is part of COCOBOD's efforts to introduce a more sustainable financing model to support timely cocoa purchases, address legacy obligations, and strengthen the sector.
COCOBOD's Domestic Cocoa Notes Programme aims to raise up to GH¢16.3 billion. The programme consists of two components: GH¢14 billion to be raised through Commercial Papers to meet short-term liquidity requirements for cocoa purchases during the 2026/27 crop season, and GH¢2.3 billion to be raised through medium- to long-term bond issuances to refinance existing COCOBOD legacy debt.
The Commercial Paper component will be issued in tranches, with the first tranche targeted at GH¢4 billion, followed by a second tranche of GH¢4 billion and a final tranche of GH¢6 billion. The timing and actual amounts to be raised will depend on COCOBOD's funding requirements, market conditions, and the applicable programme terms.
Repayment obligations under the programme will be supported by receivables from selected executed cocoa forward sales contracts assigned to Cocoa Capital PLC. Proceeds from these contracts will flow through designated ring-fenced accounts held with appointed account banks. The funds will then be applied in accordance with the programme's payment waterfall.
About 14% of the funds raised will also be used to finance COCOBOD's legacy debts. 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 was incorporated on August 7, 2026, under the Companies Act, 2019, to lead the fundraising programme.
COCOBOD officials have described the programme as a new chapter for the cocoa sector as ongoing reforms seek to strengthen financial discipline and build a more sustainable value chain. The move gives COCOBOD a dedicated vehicle for accessing the domestic capital market and raising funds under the Cocoa Notes Programme. Cocoa Capital PLC has secured approval from the Securities and Exchange Commission (SEC) to raise funds through the domestic debt capital market.
Key points
- COCOBOD raises GH¢3.39 billion at 11% interest in its first Commercial Paper tranche.
- The funds will be used to support cocoa purchases and strengthen the cocoa sector's financial position.
- The programme aims to introduce a more sustainable financing model to support timely cocoa purchases and address legacy obligations.
