Awal Saani

IT Support @CyberCity | IT/Tech Enthusiast | Fisherman

[Bright Simons @BBSimons]

COCOBOD WANTS GH¢16.3 ($1.4) BILLION; PENSION MONEY IS ON THE LINE

There was a time when international banks used to queue up to give COCOBOD money. Then the company bungled its credit and lost international market access.

Turning necessity into virtue, Ghana's only cocoa trading monopoly is waiving "domestic financing" as a banner to be proud of. It is turning to the domestic capital market for GH¢14 billion in commercial paper and GH¢2.3 billion in bonds (~$1.4 billion in total). Pension funds are a major target.

Before committing workers’ savings, pension trustees should ask some serious questions. And if they don't, the TUC should force them.

Because, as of now, the whole affair looks too much like a clique gig.

First: Where are COCOBOD’s audited accounts? For 2 financial years, COCOBOD hasn't been able to pass audit.

The prospectus being used to raise money on the Ghana Stock Exchange through the shell company (SPV) Cocobod has set up (Cocoa Capital) only contains the limited review of revenue performed by PwC. Yet it attributes to PwC a conclusion about the sponsor’s “financial position” that isn't possible for that kind of review (see prospectus PDF pages. 4 & 140).

Where is the issuer’s cash? Cocoa Capital’s audited statement records zero cash and GH¢5 million owed for its shares on 8 September. The prospectus later calls those shares “fully paid for in cash”. (see pages 74 & 174 - 177).

The notes being sold to pension funds and others are described as "unsecured" and "limited recourse". However, the directors’ model assumes they are secured by cocoa receivables. Which is true? How are workers' pension savings being protected? (See pages 70, 98, & 154).

Where is the promised cover? Assigned contracts must equal at least 1.2 times outstanding notes. Using the prospectus’s 650,000 tonnes, US$4,500 price and GH¢11.95 exchange rate, a 40% assignment yields GH¢13.98 billion: below even the GH¢14 billion principal (before interest) at the full outstanding amount. (See pages 28 & 88 to 89).

Which is the right rating? 2-year old Beacon rated the notes, true. But the CP supplement in the prospectus in circulation claims Beacon gave the notes “A1 with a stable outlook” when Beacon’s enclosed letter says it assigned the commercial paper ST1(SO), with no stated outlook (see pages 120 & 126). So, who is to be believed? Let's see a correction by Monday.

Which terms govern the transaction? The Commercial Paper matures after 270 days, but another condition prohibits redemption within 12 months. The supplements close subscriptions on 29 September; the public announcement and GCB flyer says 30 September (see prospectus PDF pages 102, 116, & 120 - 121).

Who receives the refinancing proceeds? COCOBOD says it paid GH¢2.306 billion to DDEP bondholders in 2026. The programme still proposes GH¢2.3 billion for legacy refinancing. (see page 153).

Which trustees intend to buy, and on whose independent analysis? Ghana’s SEC has itself warned about credit, liquidity and concentration risks in commercial paper. It is even unclear if the SEC has waived the net worth and audited accounts requirements and if so, on what basis.

Workers deserve answers before their retirement savings are sunk into fresh debt for Cocobod. Surely, we haven't forgotten so soon the defaults on cocoa bills in 2023?

(See linked post in the thread for the full note.)

[Jayblizz💙❤️ @kaptainjay01]

Sometimes help doesn’t come from your homies or even your friends, but from strangers from different tribes. Stop tribalism🤲

[Awal Saani @awal4real]

😂

[Miles😜🥰 @BIG_Miles_]

I no go ever delete this video from my phone 😂

[Awal Saani @awal4real]

That sweet moment after a long, hectic day… you step into the shower, undress, turn the knob, ready to feel that calm rush of water over your head, only for Ghana Water to say, “Not today.” 😩🚿

The disappointment is personal at this point. Jeeeezz!

[Awal Saani @awal4real]

https://t.co/INHhRiH5VO

[Forge Mode | Self-Mastery® @HoliHappiness]

Delete 99.87% of your digital footprint from the internet.

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[Awal Saani @awal4real]

The urge to step outside in the middle of the night while everybody is asleep just to look at the stars above, listen to the wind blow, feel the cold breeze and to walk through the streets.
#MidnightThoughts
#NightReflections
#QuiteMoments

[Awal Saani @awal4real]

Your Situation Is better Than So Many Others.
The dunya will make you think that every blessing has to be financial, so you underrate the gift of life, family, imaan, health and peace of mind.
Subhahanaalah be grateful.🙏

[Tips2Home 🏡 @Tips2Home]

Just a few minutes a day, and your body thanks you!

[Kenny | Accent Investing @AccentInvesting]

If you don't know how to read and analyze a Balance Sheet, read this:

[Awal Saani @awal4real]

Alhamdulillah, both the good and the bad thus far! The shortcomings, shortfalls, losses, betrayals, sabotage, progress, achievements, and everything in between that I cannot share or post here – the grind remains unabated.

[Awal Saani @awal4real]

Nothing beats having a safety net of invested funds you can withdraw during tough times.

[Awal Saani @awal4real]

Dear @TelecelGhana, your frequent SMS messages have become quite overwhelming and are now a source of frustration. Kindly reduce the frequency. Sincerely, a dissatisfied customer.

Cc: @asktelecelgh_

[Awal Saani @awal4real]

I'd rather get used to your absence than be annoyed by your presence.
#AbsenceOverAnnoyance

[Awal Saani @awal4real]

It breaks my heart knowing there are so many beautiful souls out there questioning their worth because someone they loved made them feel unloveable.

[Awal Saani @awal4real]

All my intentions are good, so I'm ok with how any situation plays out.

[Awal Saani @awal4real]

All it takes is just one deal, one signature, or one recommendation to open the door to countless opportunities. May we seize the moment, harness our potential, and embark on a journey filled with endless possibilities.

[ꜱᴛʀᴇᴀᴋꜱ🐾 @Moviesxtvshows1]

Asked this babé out and nothing on earth prepared me for this response 😳🤦‍♂️

Open the thread for more 👇