COCOBOD raises GH₵3.39bn through maiden commercial paper issuance

The Ghana Cocoa Board (COCOBOD) has successfully raised GH₵3.39 billion through its inaugural domestic commercial paper issuance, marking a significant shift in how the country finances its cocoa sector. The 266-day paper was issued through the board's subsidiary, Cocoa Capital PLC, as part of a larger GH₵16.3 billion Domestic Cocoa Notes Programme. The auction attracted substantial interest from the investment community, with 38 institutional investors submitting bids totaling more than GH₵3.586 billion. Ultimately, 36 of these bids were accepted at a yield of 11% per annum.

While the issuance represents a major step toward domestic capital mobilization, the initial auction fell approximately GH₵610 million short of its GH₵4 billion target for the first tranche. Despite this shortfall, COCOBOD officials view the exercise as a success in establishing a new financing structure. The overall program is designed to include GH₵14 billion in commercial paper and GH₵2.30 billion in bonds, intended to provide a robust financial cushion for cocoa purchases and general operations on the Ghana Stock Exchange.

Chief Executive Dr. Randy Abbey emphasized that this transition to domestic financing is a strategic move to reduce COCOBOD's long-standing reliance on expensive foreign syndicated loans. By tapping into local markets, the board aims to enhance its financial resilience and ensure that Licensed Buying Companies (LBCs) and cocoa farmers receive timely payments. This reform is expected to streamline liquidity management and provide more transparent payment structures for the 2026/27 cocoa season and beyond.

The successful launch of the Domestic Cocoa Notes Programme signals a commitment to sustainable agricultural financing in Ghana. By diversifying its funding sources and securing cedi-denominated capital, COCOBOD seeks to protect farmer incomes from international market volatility and currency fluctuations. The board expects that continued investor interest in subsequent tranches will stabilize the industry’s finances and support the long-term growth of the cocoa sector.