The Ghana Cocoa Board (COCOBOD) has raised GH¢3.39 billion through the first tranche of its Commercial Paper (CP) programme as the cocoa regulator continues efforts to mobilise funding for its operations.
The funds were raised through Cocoa Capital PLC, a wholly owned special-purpose vehicle of COCOBOD, according to information available on the outcome of the offer.
The amount raised, however, falls below the GH¢4 billion target set for the first tranche of the Commercial Paper programme.
The latest fundraising comes as COCOBOD seeks alternative financing sources to support its cocoa sector activities and strengthen its financial position.
COCOBOD Commercial Paper Raises GH¢3.39 Billion
The GH¢3.39 billion Commercial Paper issuance was completed last week, with investors participating in the offer expected to earn an interest rate of 11 percent.
The Commercial Paper has a 266-day tenor, meaning investors will hold the short-term debt instrument until maturity before receiving the principal amount based on the terms of the programme.
The funds are expected to provide additional financing for COCOBOD through Cocoa Capital PLC.
COCOBOD Falls Short of GH¢4 Billion Target
Despite the significant amount raised, the first tranche fell short of its initial GH¢4 billion fundraising target by about GH¢610 million.
It remains unclear whether COCOBOD or Cocoa Capital PLC has arrangements in place to secure additional funding to cover the shortfall.
The development will be closely watched by investors and stakeholders in Ghana’s cocoa industry as COCOBOD continues to explore financing options to support the country’s cocoa sector.
Investors to Receive 11% Interest
Investors who participated in the Commercial Paper programme are expected to receive an 11 percent interest rate on the investment.
With a maturity period of 266 days, the issuance provides investors with a short-term investment opportunity while giving COCOBOD access to additional funds.
The latest transaction is part of broader efforts to mobilise financing for Ghana’s cocoa industry and support the operations of the country’s cocoa regulator.
Source: newsthemegh.com