COCOBOD Secures GH¢3.4bn in Push to Reduce Reliance on Foreign Borrowing

ACCRA, Ghana — The Ghana Cocoa Board (COCOBOD) has raised GH¢3.396 billion from domestic institutional investors through its inaugural commercial paper issuance, marking a significant step in its efforts to secure financing for cocoa purchases through Ghana’s local capital market.

Cocoa Farmers at the Centre of COCOBOD’s New Financing Plan

The fundraising was conducted through Cocoa Capital PLC, a wholly owned subsidiary established to mobilise funds for approved cocoa-sector financing and refinancing activities. Its inaugural commercial paper has been admitted to the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange.

The transaction forms part of a broader GH¢16.3 billion Domestic Cocoa Notes Programme designed to diversify COCOBOD’s funding sources and strengthen the financial position of the cocoa sector.

According to details released at the listing ceremony on October 14, the first issuance attracted bids totalling approximately GH¢3.586 billion from 38 institutional investors. A total of 36 successful bids, amounting to GH¢3.396 billion, were accepted at a uniform clearing yield of 11 per cent.

COCOBOD Moves to Strengthen Cocoa Sector Financing

Funds to support cocoa purchases

The proceeds are expected to provide working capital for cocoa purchases during the 2026/27 crop season. The financing is intended to help ensure funds are available to purchase cocoa beans from farmers and support the movement of beans through the domestic supply chain.

The fundraising comes as COCOBOD seeks alternatives to its traditional dependence on external financing arrangements. Access to domestic investors is expected to give the institution another source of cedi-denominated funding for its seasonal operational needs.

However, the successful issuance alone does not establish whether all outstanding payment obligations to farmers and licensed buying companies have been settled. The impact will depend on how quickly the proceeds are deployed and how effectively the financing arrangements support purchases and payments.

Cocoa Capital PLC Makes Its Debut on Ghana’s Fixed Income Market

GH¢16.3bn financing programme

The wider Domestic Cocoa Notes Programme has a maximum target of GH¢16.3 billion. Of this amount, up to GH¢14 billion is earmarked for commercial paper to finance cocoa purchases, while a further GH¢2.3 billion is intended to be raised through bonds to refinance existing cocoa-sector debt.

Commercial paper provides short-term financing, while bonds are intended to address longer-term funding requirements. The two components are designed to support different financial needs within COCOBOD’s operations.

Cocoa Capital PLC serves as the dedicated financing vehicle for the programme, allowing COCOBOD to access the domestic debt market through a separate corporate structure.

GH¢3.4bn Fundraising Targets Cocoa Purchases for 2026/27 Season

How investors will be repaid

Repayment obligations are supported by receivables from selected executed cocoa forward-sales contracts assigned to Cocoa Capital PLC. Collections from these contracts are to be channelled through designated accounts and distributed according to an agreed payment structure.

COCOBOD has indicated that the arrangements are intended to improve cash-flow management and provide investors with greater visibility over repayment.

The commercial paper remains a senior unsecured obligation of Cocoa Capital PLC. The receivables and cash-management arrangements form part of the wider transaction structure and should not be interpreted as a blanket government guarantee.

Domestic Investment Could Help Sustain Ghana’s Cocoa Supply Chain

Implications for Ghana’s cocoa industry

The listing expands the range of fixed-income instruments available to investors on the Ghana Fixed Income Market and creates a route for domestic savings to support one of Ghana’s major export industries.

For COCOBOD, the longer-term objective is to diversify financing risks, reduce reliance on offshore borrowing and establish a more flexible funding model for seasonal cocoa purchases.

The programme’s performance will depend on continued investor participation, effective financial controls and the institution’s ability to meet its repayment obligations. Transparent reporting on how the proceeds are used will also be important in assessing whether the arrangement delivers the intended benefits.

While the first issuance has mobilised nearly GH¢3.4 billion, the wider programme is substantially larger. Further fundraising and effective management of the funds will therefore be central to determining its contribution to the cocoa sector.

The admission of Cocoa Capital PLC’s inaugural commercial paper to GFIM marks the beginning of the programme’s implementation, with its eventual success likely to be measured by the sustainability of the financing model and its practical impact on cocoa purchases, farmer payments and the sector’s financial stability.