Ghana’s cocoa regulator has paid out GH¢2bn ($166mn) in coupon payments on its restructured cocoa bills, now classified as bonds, in a move analysts cited by Citi News say is critical to restoring investor confidence after the country’s sweeping domestic debt restructuring.

Cocoa contributor to the national economy, accounting for approximately 4-6% of GDP, depending on the methodology employed, and around 30% of export earnings.

But the Ghana Cocoa Board (COCOBOD) has faced mounting debt in recent years, with total liabilities standing at GH¢33bn ($2bn) in May with outstanding debts to agrochemical suppliers exceeding $400mn. 

The September 1 coupon payments mark the first settlement since COCOBOD converted short-term cocoa bills into longer-term bonds under the government’s Domestic Debt Exchange Programme (DDEP). 

The DDEP, launched in 2023, was a key part of its debt restructuring under the IMF programme. It involved swapping about GH¢203bn ($18bn) of local government securities — including treasury bills, bonds, and COCOBOD bills — into new, longer-maturity bonds at lower coupon rates.

While it sharply reduced near-term debt servicing costs, it forced significant losses on banks, pension funds, and insurers, triggering liquidity pressures across the domestic financial sector.

The debt swap forced local lenders to step in as transaction advisers to manage the restructuring of cocoa bills, Citi News writes.

Sources close to the deal said COCOBOD has assured bondholders it will meet coupon obligations of GH¢1.9bn due in 2026 and 2027, alongside repayment of the principal.

In recent months, the board has embarked on aggressive measures to clear arrears and stabilise its finances to support purchases from cocoa farmers. “These moves are already yielding results, particularly in settling debts owed to suppliers,” one industry is quoted as saying.

By restructuring its debt, COCOBOD is expected to lower its borrowing costs and improve its credit profile, enhancing its ability to raise fresh capital for the upcoming crop season.

Bank of Ghana Governor Johnson Asiama has said the board is set to receive more than $4bn in inflows before year-end from international buyers under a new pre-financing arrangement. Past cocoa syndications averaged about $1.3bn to $1.4bn.

Earlier media reports, citing the same $4bn figure, framed it as part of a pre-financing model initiated in 2024/25, where international traders provide upfront funds to support Licensed Buying Companies (LBCs) in procuring beans.

The deal, Asiama said, would not only fund cocoa purchases but also boost the country’s foreign reserves and provide support for the cedi.

Analysts say the latest coupon payout is a step towards rebuilding trust in a market vital to the world’s second-largest cocoa exporter.