The Ghana Cocoa Board (COCOBOD) has secured GH¢3.39 billion through its wholly‑owned subsidiary, Cocoa Capital PLC, by issuing a 266‑day senior unsecured commercial paper under the Domestic Cocoa Notes Programme.
The programme, worth GH¢16.3 billion, aims to mobilise local funds for cocoa purchases and other sector needs. At the Ghana Stock Exchange admission, COCOBOD chief executive Dr Ransford Abbey hailed the deal as a key step toward reforming the financing framework of Ghana’s cocoa industry.
"The issuance shows the potential of stronger collaboration among public institutions, regulators, capital‑market participants and domestic investors to support strategic sectors of the economy," Abbey said.
Thirty‑eight institutional investors placed bids totalling about GH¢3.586 billion. Cocoa Capital PLC accepted 36 bids worth GH¢3.396 billion at a clearing yield of 11 %.
Abbey noted that the strong demand reflected investor confidence in the cocoa sector and the transaction’s structure, and highlighted Ghana’s domestic market capacity to back large‑scale financing initiatives.
The move follows COCOBOD’s long‑standing reliance on external financing for cocoa purchases. The Domestic Cocoa Notes Programme represents a deliberate shift toward mobilising domestic savings to meet cocoa‑sector funding requirements.
Under the arrangement, selected receivables from executed cocoa forward‑sales contracts are assigned to Cocoa Capital PLC. Proceeds are funneled through ring‑fenced accounts and distributed according to an agreed payment waterfall, providing a defined framework for collections and payment obligations.
While the inaugural issuance opens a new funding channel for the cocoa sector, its long‑term impact will hinge on sustained investor participation and the programme’s ability to support COCOBOD’s financing needs and financial stability.
