Accra:Cocoa Capital PLC has successfully raised GHS3.39 billion from the first tranche of its Commercial Paper programme for the Ghana Cocoa Board (COCOBOD). This initial tranche aimed to raise GHS4 billion, but the final amount fell short of this target.
According to Ghana Web, investors in the Commercial Paper will receive an interest rate of 11%, and the investment has a tenor of 266 days. This fundraising effort is part of a larger GHS16.3 billion domestic cocoa financing programme by Cocoa Capital PLC. The programme aims to raise GHS14 billion through Commercial Papers to finance cocoa purchases during the 2026/27 crop season, while the remaining GHS2.3 billion will be obtained via medium- and long-term bonds to refinance COCOBOD's existing debt.
The Commercial Paper programme is structured to be issued in three tranches. The first tranche, which targeted GHS4 billion, will be followed by a second and third tranche, aiming for GHS4 billion and GHS6 billion, respectively. The funds gathered will be secured by receivables from selected cocoa forward sales contracts assigned to Cocoa Capital PLC. Additionally, about 14% of the funds will be allocated to finance COCOBOD's legacy debts.
Cocoa Capital PLC, incorporated on August 7, 2026, under the Companies Act, 2019, is wholly owned by COCOBOD and started with an initial paid-up capital of GHS5 million. It was created to assist COCOBOD in raising funds from the domestic capital market for both cocoa-sector financing and debt refinancing. The fundraising programme has received approval from the Securities and Exchange Commission (SEC).
COCOBOD states that this programme is part of broader efforts to enhance financing within the cocoa sector, highlighting a more resilient and value-driven industry.