The proceeds from Ghana Cocoa Board’s first commercial paper issue will be used only to buy cocoa and support the organisation’s core operations, Chief Executive Dr Ransford Anertey Abbey has said.
Speaking at the admission of Cocoa Capital PLC’s inaugural issue to the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange, Dr Abbey said the funds were intended to finance cocoa purchases during the 2026/27 crop season.
“Besides the DDEP Cocoa Bonds, the proceeds of the issuance will not, and cannot, be used to pay other legacy debts of COCOBOD,” he said.
The issue was carried out through Cocoa Capital PLC, a wholly owned subsidiary of COCOBOD, as part of a GH¢16.3 billion Domestic Cocoa Notes Programme.
Under the programme, GH¢14 billion has been allocated for commercial paper to fund cocoa purchases, while a separate GH¢2.3 billion bond component is intended to refinance existing cocoa-sector debt.
That structure means the money raised through commercial paper is ring-fenced for cocoa procurement. The bond element, rather than the commercial paper, is designed to deal with specifically identified existing liabilities.
The inaugural commercial paper issue, Series 1 (Tranche 1), raised GH¢3.396 billion from domestic institutional investors.
It received bids totalling approximately GH¢3.586 billion from 38 investors, with the accepted amount clearing at a yield of 11%, according to reported transaction details.
Dr Abbey said the restriction on how the funds could be used was consistent with COCOBOD’s core mandate under its new governing legislation.
He said the financing had to be applied to its stated purpose and was intended to improve the Board’s capacity to purchase cocoa while supporting the livelihoods of farmers.
“The cocoa farmer remains central to this transaction,” Dr Abbey said, adding that the financing model was designed to protect farmer incomes and help ensure timely payments.
He also pledged that COCOBOD would maintain transparency, accountability and financial discipline. That commitment includes proper reporting and meeting the organisation’s debt-service obligations.
The domestic financing programme forms part of a wider effort to reduce COCOBOD’s dependence on external borrowing and create a more sustainable funding structure for Ghana’s cocoa industry.
