Cocoa Capital PLC, the special-purpose company created to raise money for the Ghana Cocoa Board (COCOBOD), raised GH¢3.39 billion in its first commercial paper issue, GH¢610 million, or 15.3%, less than the GH¢4 billion indicative first tranche shown to investors.
The 266-day paper was priced at a uniform 11% and matures on 28 June 2027, according to NorvanReports. Investors bid GH¢3.59 billion, so GH¢200 million of demand was not allocated.
The issue is the first draw on a GH¢16.3 billion Domestic Cocoa Notes Programme. Up to GH¢14 billion is meant to come from commercial paper to buy cocoa for the 2026/27 season, and up to GH¢2.3 billion from bonds to refinance cocoa bonds from the Domestic Debt Exchange Programme. The first issue covers 24.2% of the commercial paper target, leaving about GH¢10.61 billion still to raise.
The company's first financial statements, for the period to 30 September, predate the issue. Incorporated on 7 August, it reported GH¢5 million in stated capital, a GH¢100,000 start-up loss, total equity of GH¢4.9 million and no cash at the reporting date. The GH¢3.39 billion raised is 678 times that stated capital.
Repayment is meant to come from COCOBOD's cocoa sales. Receivables from selected forward-sale contracts are assigned to ring-fenced accounts and paid out under a set order, rather than relying on the company's own capital.
The model moves COCOBOD's seasonal funding towards cedi money from local institutional investors and away from the earlier buyer-financed and offshore borrowing. The money raised is debt, not revenue, and must be repaid when the paper matures.