Accra:Cocoa Capital PLC, a subsidiary of the Ghana Cocoa Board (COCOBOD), plans to raise up to GHS16.3 billion to finance cocoa purchases and bolster the financial standing of the cocoa industry.
According to Ghana News Agency, this initiative will be executed through the Domestic Cocoa Notes Programme. GHS14 billion of the funds will be raised via Commercial Paper to address short-term liquidity needs for cocoa purchases in the 2026/27 crop season.
An additional GHS2.3 billion will be raised through medium-to-long-term bond issuances to refinance existing COCOBOD legacy debt. This effort is part of the Government's cocoa sector reset agenda, aimed at establishing a more sustainable financial model for the sector.
The Securities and Exchange Commission has approved Cocoa Capital PLC's plan to raise the funds through the domestic debt capital market. Commercial papers will be issued in tranches, considering funding needs and current market conditions.
The programme's repayment obligations will be supported by receivables from assigned cocoa forward sales contracts, with proceeds being managed through designated accounts in alignment with the payment waterfall structure.
Further details regarding each issuance will be provided in due course. The programme's Bookrunners include Absa Bank Ghana Limited, CalBank PLC, Fincap Securities Limited, GCB Bank PLC, One Africa Securities Limited, and Stanbic Bank Ghana Limited.