COCOBOD has raised approximately GH¢3.4 billion through its first commercial paper issuance, falling about GH¢604 million short of the indicative GH¢4 billion presented to investors.

The funds were raised through Cocoa Capital PLC, the wholly owned company established by COCOBOD to borrow from investors under its new domestic financing programme.

According to the published results, GH¢3.39 billion was allotted at a yield of 11%. The notes were issued on October 5, 2026, and will mature on June 28, 2027.

The amount represents approximately 85% of the initial GH¢4 billion financing plan for the first tranche. However, the GH¢4 billion was an indicative figure in the investor presentation.

That distinction matters because the amount accepted is not necessarily the total amount investors offered.

The published results do not state how much COCOBOD received in bids or whether some were rejected.

It is therefore unclear whether investors offered less than expected, demanded rates COCOBOD was unwilling to pay, or whether the company decided to raise a smaller amount.

The issuance also took place later than initially planned.

Cocoa Capital’s September 25 announcement set out an indicative timetable for bidding to close on September 30, followed by settlement and issuance on October 1. The notes were eventually issued on October 5, four calendar days later.

Their duration was also reduced from 270 to 266 days.

The final yield of 11% was at the upper end of the initial guidance of 10.5% to 11%.

These developments raise questions about how readily COCOBOD was able to secure the funds on its preferred terms. But without the full bidding results, they do not explain why it raised less than initially envisaged.

The first issuance forms part of a programme allowing up to GH¢16.3 billion in notes to be outstanding at any time.

Approximately GH¢14 billion is intended to finance cocoa purchases through commercial paper, while GH¢2.3 billion in longer-term bonds is intended to refinance existing debt.

There is also an unresolved question over how the first GH¢3.4 billion will be used.

As JoyNews Research previously reported, the investor presentation assigned commercial paper to cocoa purchases. The issuance announcement, however, also listed repayment of a bridge loan obtained to refinance COCOBOD’s legacy debt.

• Read here: COCOBOD asks investors to fund cocoa purchases, but proceeds may also repay old debt

The latest notice does not disclose how much will be used to purchase cocoa and how much, if any, will repay that loan.

The prospectus says details of bridge funding should be disclosed in the relevant pricing supplement, the document setting out the terms of each issuance.

As of October 8, that document was not available on Cocoa Capital’s website.

Meanwhile, COCOBOD has indicated that it could return to the market shortly.

Speaking on Channel One TV’s The Point of View on September 28, Deputy Chief Executive in charge of Finance and Administration, Ato Boateng, indicated that COCOBOD could return to the market about two weeks after the first issuance.

“Maybe two weeks later… we’ll come in and then do another tranche, and then we’ll finally look at the GH¢2.3 billion, which is the longer term,” he said.

His comments suggest that the next round of fundraising could follow shortly.

The first offer gives COCOBOD a basis for deciding how much to seek next and at what price. Whether investors will provide more money on similar terms remains to be seen.

For now, the amount raised is known.

How much investors offered, why COCOBOD accepted less than its initial financing plan, and how the money will be divided between cocoa purchases and debt repayment remain unclear.