Cocoa financing proceeds will not be used to settle legacy debts-COCOBOD CEO
The Chief Executive of the Ghana Cocoa Board (COCOBOD), Dr Ransford Anertey Abbey, has stated that proceeds from the Board’s maiden commercial paper issuance will be used exclusively for cocoa purchases and core operations, ruling out their use to settle other legacy debts.
Speaking at 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 finance cocoa purchases for the 2026/2027 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 undertaken through Cocoa Capital PLC, a wholly owned subsidiary of COCOBOD, under a GH¢16.3 billion Domestic Cocoa Notes Programme.
The programme consists of GH¢14 billion in commercial paper to finance cocoa purchases and GH¢2.3 billion in bonds designed to refinance existing debt within the cocoa sector.
Under the arrangement, proceeds from the commercial paper are earmarked for cocoa purchases, while the separate bond component is intended to address designated existing debts.
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 restrictions on the use of the funds were consistent with COCOBOD’s core mandate under its new governing legislation.
He emphasised that the proceeds must be applied to their designated purpose, noting that the financing arrangement was intended to strengthen the Board’s capacity to purchase cocoa and support the livelihoods of farmers.
The COCOBOD chief executive said cocoa farmers remained central to the initiative, explaining that the financing model was designed to protect their incomes and facilitate timely payments.
He also reaffirmed the Board’s commitment to transparency, accountability and financial discipline, including proper financial reporting and the fulfilment of its debt-service obligations.
The domestic financing programme forms part of broader efforts to reduce COCOBOD’s dependence on external borrowing and establish a more sustainable funding framework for Ghana’s cocoa industry.
By Esther Padmore Amonoo
