Cocoa financing proceeds will not fund other legacy debts - COCOBOD CEO

The Chief Executive of Ghana Cocoa Board (COCOBOD), Dr Ransford Anertey Abbey, says proceeds from the Board’s maiden commercial paper issuance will be restricted to cocoa purchases and core operations, and will not be used to settle other legacy debts.

Addressing the admission of Cocoa Capital PLC’s inaugural issuance to the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange, Dr Abbey said the funds were intended to support 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 issuance was conducted through Cocoa Capital PLC, a wholly owned subsidiary of COCOBOD, under a GH¢16.3 billion Domestic Cocoa Notes Programme.

The programme comprises GH¢14 billion in commercial paper to finance cocoa purchases and GH¢2.3 billion in bonds intended to refinance existing cocoa-sector debt.

The distinction means the commercial paper proceeds are earmarked for cocoa purchases, while the programme’s separate bond component is designed to address designated existing debt.

The inaugural commercial paper issuance, Series 1 (Tranche 1), raised GH¢3.396 billion from domestic institutional investors.

The transaction attracted bids of 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 the use of the proceeds was consistent with COCOBOD’s core mandate under its new governing legislation.

He stressed that the funds must be applied to their intended purpose, adding that the financing arrangement was designed to strengthen the Board’s ability to purchase cocoa and support the livelihoods of farmers.

The Chief Executive said the cocoa farmer remained central to the transaction, with the financing model intended to safeguard farmer incomes and support timely payments.

He also committed COCOBOD to transparency, accountability and financial discipline, including proper reporting and meeting its debt-service obligations.

The domestic financing programme represents part of a broader effort to reduce COCOBOD’s reliance on external borrowing and establish a more sustainable funding framework for the cocoa industry.