West African agribusinesses raise capital for cocoa procurement

Major agribusiness players in West Africa are utilizing commercial paper programmes to secure liquidity for the upcoming cocoa harvest seasons.

In Ghana, the Ghana Cocoa Board (COCOBOD), via its special-purpose vehicle Cocoa Capital PLC, has raised GH¢3.39 billion through the first tranche of its Commercial Paper programme. The funds were raised at an interest rate of 11% with a 266-day tenor. This amount fell slightly short of the GH¢4 billion target for this tranche. The broader Domestic Cocoa Notes Programme aims to raise up to GH¢16.3 billion to support cocoa purchases and refinance legacy debt.

In Nigeria, Johnvents Industries Limited is planning to raise up to N80 billion through a commercial paper issuance. Advised by CardinalStone Partners Limited, the company intends to use the proceeds to meet working capital requirements, specifically for bulk cocoa purchases as the main harvest season begins. Johnvents operates processing facilities in Akure and Ile-Oluji with an annual capacity of approximately 48,000 metric tonnes.