Cocoa Capital PLC Plans GHS16.3B Domestic Cocoa Notes

In Short

• Cocoa Capital PLC plans to raise up to GHS16.3 billion through a Domestic Cocoa Notes Programme.
• GHS14 billion is planned as commercial paper to fund 2026/27 cocoa purchases.
• GHS2.3 billion is planned as bonds to restructure COCOBOD legacy debt.

What Happened

Cocoa Capital PLC says it will raise up to GHS16.3 billion under a Domestic Cocoa Notes Programme to support cocoa financing in Ghana. The programme is designed to fund cocoa bean purchases for the 2026/27 crop season and improve the sector’s balance sheet.

The company, a wholly owned subsidiary of Ghana Cocoa Board, plans to issue GHS14 billion as commercial paper. Commercial paper is short-term debt, similar to a company IOU that usually matures in weeks or months. Cocoa Capital said issuances will be done in tranches in the coming weeks, so borrowing can match purchase timing and market conditions.

The remaining GHS2.3 billion is planned as mid-to-long-term bonds. Bonds are longer-term borrowing, typically used for multi-year funding needs. Cocoa Capital said this portion will be used to restructure existing COCOBOD legacy debt.

Cocoa Capital said it has Securities and Exchange Commission approval to raise funds through Ghana’s domestic debt capital market. Repayment will be supported by receivables from selected cocoa forward sales contracts assigned to the company. A forward sale is an agreement to sell cocoa in the future at an agreed price. Proceeds will flow through ring-fenced accounts, meaning separate accounts reserved for servicing the programme, following a defined payment order.

Bookrunners named for the programme include Absa Bank Ghana, CalBank, Fincap Securities, GCB Bank, One Africa Securities, and Stanbic Bank Ghana.

Why It Matters

COCOBOD has historically relied heavily on external and syndicated financing to pre-finance cocoa purchases. A larger domestic cocoa notes programme could shift more of that funding into the local capital market, if pricing and investor demand hold.

For farmers and licensed buying companies, the key issue is timing. If the commercial paper programme delivers liquidity on schedule, it could reduce delays in purchasing and help stabilise the cocoa buying cycle. For Ghana’s broader financial sector, the structure, including forward-sale-backed repayment and ring-fenced accounts, is a signal of tighter cashflow controls aimed at reducing rollover risk.