The Ghana Cocoa Board (COCOBOD) has raised GH¢3.39 billion at an interest rate of 11% in the first tranche of its Commercial Paper programme, falling GH¢610 million short of the GH¢4 billion it targeted, according to reports published on Monday, October 5, 2026.
The paper was issued by Cocoa Capital PLC, a wholly owned special-purpose vehicle of COCOBOD, and carries a tenor of 266 days.
The issue is the first step in COCOBOD’s GH¢16.3 billion Domestic Cocoa Notes Programme, which is designed to fund cocoa purchases for the 2026/27 crop season from local investors instead of international lenders.
The move follows years of financing difficulties that led to delays in payments to cocoa farmers and buyers.
COCOBOD commercial paper raises GH¢3.39 billion at 11%
The first tranche attracted GH¢3.39 billion against a target of GH¢4 billion, meaning about 85% of the amount sought was raised.
The paper was priced at 11% and will run for 266 days, within the up-to-270-day tenor COCOBOD outlined when it pitched the programme to investors in September.
Six firms acted as bookrunners: Absa Bank Ghana Ltd, CalBank PLC, Fincap Securities Ltd, GCB Bank PLC, One Africa Securities Ltd and Stanbic Bank Ghana Ltd.
How the GH¢16.3 billion cocoa financing programme works
The Domestic Cocoa Notes Programme is split into two parts: short-term Commercial Papers for crop purchases and longer-term bonds to refinance existing debt.
- Total programme size: GH¢16.3 billion (about US$1.4 billion)
- Commercial Papers: GH¢14 billion for 2026/27 cocoa purchases
- Medium- to long-term bonds: GH¢2.3 billion to refinance legacy debt
- Tranche 1 target: GH¢4 billion – raised: GH¢3.39 billion
- Tranche 2 target: GH¢4 billion
- Tranche 3 target: GH¢6 billion
- Shortfall in tranche 1: GH¢610 million
About 14% of the funds will go towards financing COCOBOD’s legacy debts, according to the programme details.
Who is Cocoa Capital PLC?
Cocoa Capital PLC was incorporated on August 7, 2026, with a paid-up capital of GH¢5 million. It is 100% owned by COCOBOD.
The company secured approval from the Securities and Exchange Commission (SEC) to raise funds on the domestic debt capital market.
Repayment is secured by receivables from executed cocoa forward sales contracts, which have been assigned to Cocoa Capital PLC and flow through ring-fenced accounts.
Why COCOBOD turned to local investors for cocoa financing
For decades, COCOBOD relied on an annual syndicated loan from international banks to buy cocoa from farmers. That arrangement collapsed during the 2023/24 season.
A separate pre-financing deal with international trading houses also fell through last season, contributing to delays in payments to farmers.
When the domestic plan was unveiled in September, cocoa buyers were reported to be owed about GH¢4 billion by COCOBOD for the previous season’s crop.
Eligible investors in the programme include commercial banks, pension funds, insurance companies, stockbrokers, high-net-worth individuals, institutional investors and international cocoa buyers.
What the cocoa financing deal means for farmers
The money raised is meant to give COCOBOD cash to buy beans from farmers during the 2026/27 season and reduce the risk of payment delays seen in recent years.
The new season comes after government announced a higher producer price for farmers. Read more: Cocoa Price Rises to GH¢42,400 Per Tonne for 2026/27 Season.
The GH¢610 million shortfall in the first tranche, however, means COCOBOD will need stronger demand in the later tranches to meet its full GH¢14 billion purchase-financing goal.
What happens next for COCOBOD’s Commercial Paper programme
COCOBOD is expected to return to the market with a second tranche targeting GH¢4 billion, followed by a third tranche of GH¢6 billion.
The programme also includes GH¢2.3 billion in medium- to long-term bonds, with maturities of up to five years, to refinance existing short-term debts. More information on the cocoa sector is available on the official COCOBOD website.
Key details at a glance
- COCOBOD raised GH¢3.39 billion in its first Commercial Paper tranche.
- The target was GH¢4 billion, leaving a shortfall of GH¢610 million.
- The interest rate is 11% and the tenor is 266 days.
- The issuer is Cocoa Capital PLC, COCOBOD’s special-purpose vehicle.
- The overall Domestic Cocoa Notes Programme is worth GH¢16.3 billion.
- Repayment is backed by cocoa forward sales receivables in ring-fenced accounts.
- Two more Commercial Paper tranches of GH¢4 billion and GH¢6 billion are planned.
FAQs
How much did COCOBOD raise from its commercial paper?
COCOBOD raised GH¢3.39 billion in the first tranche of its Commercial Paper programme, against a target of GH¢4 billion.
What is the interest rate on the COCOBOD commercial paper?
The first tranche was priced at 11% with a tenor of 266 days.
What is Cocoa Capital PLC?
Cocoa Capital PLC is a wholly owned special-purpose vehicle of COCOBOD, incorporated on August 7, 2026, to raise money on Ghana’s domestic debt market for cocoa financing.
COCOBOD’s first domestic Commercial Paper raised GH¢3.39 billion at 11%, short of its GH¢4 billion target, as the regulator moves away from foreign syndicated loans to fund the 2026/27 cocoa season. Two more tranches worth GH¢10 billion remain under the GH¢16.3 billion programme.
