Cocoa Capital PLC, the special-purpose vehicle wholly owned by the Ghana Cocoa Board, has raised GH¢3.39 billion from its first Cocoa Capital Commercial Paper issuance, falling short of the GH¢4 billion initially targeted for the opening tranche.
The funds were raised last week, according to persons familiar with the outcome of the offer.
Investors who participated in the issuance are expected to receive an interest rate of 11%, with the Commercial Paper carrying a tenor of 266 days.
The result gives COCOBOD a sizeable pool of domestic funding for the 2026/27 cocoa season, although the first offer did not fully meet its original target.
It is not yet clear whether Cocoa Capital or COCOBOD intends to secure additional financing to cover the gap before moving to the next tranche.
GH¢16.3bn Financing Programme Takes Shape
The issuance forms part of Cocoa Capital’s wider GH¢16.3 billion Domestic Cocoa Notes Programme.
Under the structure, GH¢14 billion is expected to be raised through Commercial Papers to support short-term liquidity requirements for cocoa purchases during the 2026/27 season.
Another GH¢2.3 billion is earmarked for medium and long-term bonds intended to refinance legacy obligations on COCOBOD’s books.
The Commercial Paper component is being rolled out in stages. The first tranche was set at GH¢4 billion, followed by another GH¢4 billion tranche and a final GH¢6 billion issuance.
The actual timing and size of subsequent offers will depend on financing needs, market conditions and the terms governing the programme.
Repayment under the programme will be supported by receivables from selected executed cocoa forward sales contracts assigned to Cocoa Capital PLC.
Proceeds from those contracts are expected to flow through designated ring-fenced accounts and be applied according to an agreed payment waterfall.
The structure is intended to give investors greater comfort over how repayment funds will be generated and managed.
Around 14% of the broader programme is also expected to support the refinancing of legacy COCOBOD debt.
Absa Bank Ghana, CalBank, Fincap Securities, GCB Bank, One Africa Securities and Stanbic Bank Ghana are acting as bookrunners.
New Vehicle for Domestic Cocoa Funding
Cocoa Capital PLC was incorporated on August 7, 2026, under the Companies Act, 2019, with an initial paid-up capital of GH¢5 million.
Its creation gives COCOBOD a dedicated entity through which it can access Ghana’s domestic debt market rather than relying entirely on traditional cocoa financing arrangements.
The Securities and Exchange Commission has approved the programme, allowing Cocoa Capital to raise funds through the domestic capital market.
COCOBOD has presented the structure as part of a broader attempt to improve financial discipline and create a more sustainable funding model for cocoa purchases.
“This turnaround signals a cocoa sector that is more resilient, disciplined, and built to deliver value at every level,” COCOBOD told investors.
The first tranche provides an early indication of investor appetite for the new financing structure.
Raising GH¢3.39 billion shows substantial demand, but the shortfall against the GH¢4 billion target also means attention will shift quickly to the pricing and reception of the next issuance.
For COCOBOD, the programme has a practical objective: secure enough liquidity to buy cocoa on time while reducing pressure from legacy debt.
The success of the wider GH¢16.3 billion programme will depend on whether later tranches attract sufficient demand without pushing financing costs to levels that create new debt pressures for the sector.
READ ALSO: Bawumia Congratulates New NPP Executives, Calls for Unity Ahead of 2028
