COCOBOD honouring payments of maturing cocoa bills to investors

Information reaching norvanreports indicate that, COCOBOD has began to make payments to investors of its maturing 182 day cocoa bills.

Payments by the regulator, has dampened anxiety among investors over the possible inability of the regulator to meet its debt obligations to investors.

The fear and anxiety expressed by investors was caused by the unilateral decision of the regulator, banks and the BoG to unilaterally rollover matured cocoa bills in January without the prior notice of investors.

The decision to do so, the BoG later explained in a press statement, was due to the severe undersubscription  of the recently issued cocoa bills, resulting in a shortfall of GHS 855m ($138m) against the target of GHS 940m.

The BoG stated that it was not aware that the short-term debt security had been sold to retail investors as it was meant to be held by financial institutions only.

It added that it expects the short-term cash flow challenges facing COCOBOD to be resolved soon, enabling the industry regulator to meet its obligations to investors.

The maturing cocoa bills set to mature on Friday, February 10, 2023, was issued on August 9, 2022 at an interest rate of 30%.

Source: norvanreports.com