COCOBOD raises GH₵3.4bn through inaugural commercial paper issuance

The Ghana Cocoa Board (COCOBOD) has successfully raised GH₵3.396 billion from domestic institutional investors through its first-ever commercial paper issuance. The fundraising, conducted via Cocoa Capital PLC, is part of a broader Domestic Cocoa Notes Programme designed to finance cocoa purchases for the 2026/27 crop season. This move marks a strategic shift for the state-owned commodity buyer as it seeks to reduce its long-standing reliance on external borrowing and tap into Ghana's internal capital markets.

The issuance is the first phase of a GH₵16.3 billion domestic financing initiative, which includes GH₵14 billion in commercial paper and GH₵2.3 billion in bonds. During the inaugural auction, the board attracted significant investor interest, receiving approximately GH₵3.59 billion in bids. The successful notes were issued at an 11% interest rate, reflecting market confidence in the board's new financial direction. The proceeds will be used to ensure timely payments to cocoa farmers and to refinance existing debt obligations.

COCOBOD Chief Executive Dr. Randy Anertey Abbey described the program as a transformative step for the cocoa sector. He emphasized that transitioning to domestic capital markets enhances the sector's financial resilience and supports the livelihoods of farmers. Board Chairman John Awuah highlighted that a structured financing mechanism has been established to ensure transparency and accountability, ensuring the funds are used effectively to support agricultural development and national economic growth.

The listing of these inaugural papers on the Ghana Fixed Income Market (GFIM) signals a deepening of the local financial ecosystem. By prioritizing domestic institutional funds, COCOBOD aims to create a more sustainable model for agricultural financing that is less vulnerable to international market volatility and exchange rate fluctuations. The initiative is viewed by stakeholders as a landmark effort to strengthen the financial backbone of Ghana's cocoa industry.