Cocoa Processing & Export Group
A structured refinancing and growth capital solution designed to strengthen one of Ghana's leading cocoa processing businesses by reducing financing costs, improving working capital availability, and supporting long-term export growth through a flexible institutional investment.
Sector
Agribusiness & Cocoa Processing
Geography
Ghana
Facility Size
Up to USD 94 Million
Structure
Term Debt + Revolving Facility + Equity
The Situation
A major cocoa processing group required a comprehensive financing package to refinance existing obligations while securing additional working capital for cocoa bean procurement, production activities, and export operations. The seasonal nature of the cocoa industry required a capital structure that could efficiently support fluctuating inventory and trading cycles.
Beyond refinancing, management sought a long-term investment partner capable of supporting future production growth and strengthening the company's position within international agricultural markets.
Due Diligence & Structuring
Financial, operational, and commercial due diligence focused on processing capacity, export contracts, inventory cycles, and projected cash flows. Based on the company's funding requirements, the transaction was structured through a combination of long-term debt, a revolving working capital facility, and an equity investment.
This blended approach enabled existing debt to be refinanced immediately while ensuring continuous liquidity for raw material procurement during each harvest season, creating a more resilient long-term capital structure.
Challenges & Solutions
-
Seasonal Working Capital Requirements
A revolving credit component was incorporated to align financing with seasonal cocoa procurement and export cycles, ensuring uninterrupted operational liquidity. -
Debt Optimization
Existing higher-cost borrowings were refinanced through long-term institutional capital, improving the company's overall funding profile and reducing financing pressure. -
Future Growth Capacity
The blended capital structure provided flexibility for future production expansion while maintaining a balanced debt-to-equity position.
Key Transaction Terms
Facility
Up to USD 94 million comprising Term Debt, Revolving Working Capital Facility, and Equity Investment.
Tenor
Long-term institutional financing structured around operational cash-flow cycles and seasonal business requirements.
Working Capital
Revolving facility supporting cocoa procurement, inventory management, production, and export activities.
Equity Exit
Buyback provisions with predefined investor return thresholds and multiple strategic exit alternatives.
Security
Share pledges, corporate guarantees, assignment of cash flows, inventory security, and additional collateral where required.
Use of Funds
Debt refinancing, cocoa procurement, processing expansion, inventory financing, export operations, and corporate growth.
Investment Outcome
The integrated financing solution strengthened the company's balance sheet, improved liquidity throughout seasonal procurement cycles, and provided a stable capital platform for continued production and export expansion. By combining refinancing with revolving working capital and long-term equity, the transaction positioned the business for sustainable growth within the global cocoa industry.
