COCOBOD Secures $288 Million for Cocoa Purchases
The Ghana Cocoa Board (COCOBOD) has successfully raised 3.39 billion cedis ($288.02 million) through a short-term debt issuance in the domestic market to finance cocoa purchases from farmers as the new crop season begins. This issuance took place on October 5 and attracted an interest rate of 11%, with a maturity date set for June 2027.
However, the amount raised was below the initial target of 4 billion cedis ($339.85 million), resulting in a financing gap of approximately $51.83 million. This debt issuance is the first of three planned under COCOBOD's 16.3 billion cedis ($1.38 billion) domestic financing program, with the remaining tranches expected to be issued before the end of the current crop season.
COCOBOD has been facing ongoing financing challenges since its previous borrowing arrangement with international banks collapsed during the 2023/2024 cocoa season, leading to liquidity constraints and delays in payments to farmers.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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