The Ghana Cocoa Board (COCOBOD) has attributed its profit posted for the 2022/2023 crop season to the restructuring of the cocoa bills worth ¢7.9 billion.
The cocoa regulator returned to profit after ending a six year losing streak, following the restructuring.
Chief Executive Officer, Joseph Boahen Aidoo said the impact of the restructuring exercise has been positive.
Speaking after a visit to some cocoa farms in the Western and Central regions of Ghana, Mr. Boahene Aidoo said the cocoa regulator posted some ¢2.3 billion profit through some key measures put in place by the regulator and the government.
“Imagine paying interest of over 30% on a GH¢7.9 billion debt. It was just head-crushing. The 12.5% is manageable and has brought some big relief to COCOBOD”.
“It has been very positive, before the restructuring, we were paying interest of around 30 per cent. However, with the restructuring, the coupon rates have reduced to 12.5%”, he said.
COCOBOD posted losses of GH¢199 million, GH¢395 million, GH¢78 million, GH¢275 million and GH¢426 million in the preceding years, of 2022, 2021, 2020 2019 and 2018 respectively.
Background
The COCOBOD launched a debt securities exchange programme last year to restructure cocoa bills.
Under the programme, the board invited holders of its short-term debt securities (the Cocoa Bills) to voluntarily offer to exchange their Cocoa Bills for longer-term debt securities with averagely lower coupon rates.
Holders of the Cocoa Bills whose offers were accepted received five new bonds, which would mature in 2024, 2025, 2026, 2027 and 2028.
The new bonds came at a coupon rate of 12.5%.