COCOBOD raises GH•3.4bn through maiden cocoa notes offer

The Ghana Cocoa Board (COCOBOD) has successfully raised GH•3.4 billion through its first-ever commercial paper issuance on the domestic capital market. The short-term debt, issued via the special purpose vehicle Cocoa Capital PLC, carries an 11% yield and is intended to provide critical liquidity for the 2026/2027 cocoa crop season. This maiden offer represents a significant step in the board's strategic shift toward domestic financing to support its operations and Licensed Buying Companies (LBCs).

While the issuance marks a successful entry into the domestic notes market, the amount raised fell 15% short of COCOBOD's indicative target of GH•4 billion. The GH•610 million shortfall means the board achieved roughly 85% of its immediate financing goal. The notes were issued on October 5, 2026, and are scheduled to mature on June 28, 2027. Despite the gap between the target and the actual bids accepted, the 11% interest rate is seen as a competitive benchmark for the board's new borrowing strategy.

This issuance is part of a broader GH•16.3 billion domestic financing program aimed at reducing COCOBOD's historical reliance on international syndicated loans. By tapping into local capital, the board seeks to gain greater control over its borrowing costs and repayment schedules. The funds are primarily earmarked for cocoa purchases, ensuring that LBCs have the necessary cash flow to pay farmers promptly, a move intended to stabilize the sector following previous challenges with international financing arrangements.

Deputy Chief Executive Ato Boateng indicated that the board is closely monitoring market conditions and may return to the capital market in the near future to secure additional funding. The ultimate success of this new financial direction will depend on the timely disbursement of these funds to the field. Industry observers note that while the shift to domestic debt increases autonomy, the board must consistently meet its obligations to maintain investor confidence in future tranches of the GH•16.3 billion program.