Ghana Cocoa Board (COCOBOD) announced it is looking to raise GH¢16.3 billion (about US$1.4 billion) from domestic investors to finance cocoa purchases for the next season. The move follows the collapse of a decade‑old syndicated loan arrangement with international banks during the 2023/24 season and the failure of a separate pre‑financing deal with international trading houses, which delayed payments to farmers.
According to a government presentation to investors, a new special purpose vehicle, Cocoa Capital PLC, will issue a first tranche of debt this week. The tranche will include a 2.3 billion‑cedi bond and 4 billion‑cedi commercial paper. Commercial paper with tenors up to 270 days will cover seasonal cocoa purchases, while the bonds, maturing up to five years, will refinance COCOBOD’s existing short‑term debt.
COCOBOD’s buyers have highlighted that they are owed roughly 4 billion cedis for last season’s crop and want repayment before the new crop year begins. The Chamber of Cocoa Marketers warned that financing may not yet be in place to fund purchases once the season opens. Ghana and Ivory Coast, the world’s two largest cocoa producers, had agreed in June to harmonise farmgate prices and season start dates, but Ghana has yet to announce a start date.
Debt repayments will be backed by assigned cocoa export receivables from selected forward sales contracts. Eligible investors include commercial banks, pension funds, insurance companies, stockbrokers, high‑net‑worth individuals, other institutional investors and international cocoa buyers. COCOBOD did not comment on the new issuance, but had previously noted on X that the government was engaging investors to mobilise Ghana’s domestic capital market for the cocoa sector.
What to watch: The success of the bond and commercial paper issuance will determine whether COCOBOD can meet its payment obligations to farmers and buyers ahead of the new season.
