Kineden Commodities secures US$64.8M to support sustainable cocoa trading, diversification efforts
IVORY COAST – Kineden Commodities SA, one of Ivory Coast’s largest sustainable cocoa traders, has secured a financing package of nearly €60 million (US$64.8M) from a consortium of international banks to support its operations over the next three cocoa seasons.
This structured financing will enable Kineden to optimize the cost of its financial resources, secure cocoa supplies amid rising prices, and expand into agricultural processing.
Of the total financing, €20 million (US$21.6M) has been allocated for the 2023-2024 cocoa season.
The funds will help Kineden navigate a volatile market marked by record cocoa prices and heightened competition for cocoa bean supplies.
The company aims to use the financial boost to secure its purchases and strengthen its position as a key player in the Ivorian agro-industrial sector.
Moukaramou Chanou Alao, Managing Director of Ecobank International, expressed his support for Kineden, stating, “We are delighted to continue supporting Kineden Commodities in its efforts to promote sustainable and high-quality cocoa production. This partnership reflects our commitment to supporting local businesses in their growth and contributing to the social and economic development of the region.”
Kineden, founded in 2014 and a major player in certified sustainable cocoa, is also looking to diversify its trading activities.
The company plans to expand into other agricultural commodities, such as cashew nuts, and increase its involvement in the processing of agricultural products.
This strategic vertical and horizontal integration of the agricultural value chain is expected to further solidify Kineden’s role in the Ivorian agro-industry.
Kineden’s Managing Director, Stéphane Apoque said, “These optimised funds send a strong signal to the Coffee and Cocoa Council, which, under the leadership of its Director General Yves Birahima Kone, is working to develop local entrepreneurs capable of mobilizing the necessary funds to fulfil the government’s ambitions of industrializing the sector and improving incomes for Ivorian farmers.”
The transaction was facilitated by Obara Capital, with legal documentation prepared by Hughes Hubbard & Reed.
Kineden Commodities exports over 50,000 tons of cocoa beans annually and holds UTZ and FairTrade certifications, further underscoring its commitment to sustainable production.
The funding comes as cocoa production in Ivory Coast is projected to reach nearly 2.2 million tonnes in the 2024/2025 campaign, a 25 percent increase from the previous harvest, driven by favorable weather conditions.
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