Cocoa Capital PLC, a wholly owned subsidiary of the Ghana Cocoa Board (COCOBOD), is raising up to GH¢16.3 billion to finance purchases and strengthen the financial position of the cocoa sector.
The initiative, which would be carried through the Domestic Cocoa Notes Programme, would have GH¢14 billion being raised through Commercial Paper to meet short-term liquidity requirements for cocoa purchases during the 2026/27 crop season.
The remaining GH¢2.3 billion would be mobilised through medium-to-long-term bond issuances to refinance existing COCOBOD legacy debt.
A statement issued by Cocoa Capital PLC, copied to the Ghana News Agency in Accra on Saturday, said the programme formed part of the Government’s cocoa sector reset agenda, intended to introduce a more sustainable financing model for the sector.
It said the initiative would support timely cocoa purchases, address legacy financial obligations and strengthen the cocoa sector for the future.
The company had secured approval from the Securities and Exchange Commission to raise the funds through the domestic debt capital market, it said.
The statement said a commercial paper would be issued in tranches in the coming weeks, taking into consideration funding requirements for cocoa purchases and prevailing market conditions.
The repayment obligations under the programme would be supported by receivables from selected executed cocoa forward sales contracts assigned to Cocoa Capital PLC.
Proceeds from the contracts would be channelled through designated ring-fenced accounts held with appointed account banks and applied in accordance with the programme’s payment waterfall, the statement said.
Further details on each issuance would be announced in due course, it said.
The Bookrunners for the programme are Absa Bank Ghana Limited, CalBank PLC, Fincap Securities Limited, GCB Bank PLC, One Africa Securities Limited, and Stanbic Bank Ghana Limited.
GNA