OCP Group Plans MAD 5 Billion Bond Issuance to Fund Green Investment Program

Thursday 05 December 2024 - 10:20

By: Dakir Madiha

OCP Group Plans MAD 5 Billion Bond Issuance to Fund Green Investment Program

OCP Group, Morocco's leading phosphate company, is preparing to issue bonds worth MAD 5 billion from December 10 to 12, 2024. This move aligns with the company's ongoing green investment strategy for 2023-2027, which has a substantial budget of MAD 130 billion. The Moroccan Capital Market Authority (AMMC) recently announced the prospectus for the bond issuance, emphasizing that subscriptions will be limited to qualified Moroccan investors.

The bond offering will include five non-listed tranches, with varying maturities and interest rates. Tranches A and B will have a 10-year maturity, while Tranches C, D, and E will mature in 15, 20, and 30 years, respectively. The interest rate for Tranche A will be adjustable annually, while the rates for the other tranches will be fixed for the duration of the bond.

This bond issuance forms part of OCP's broader investment plan, which aims to fuel the company's growth and expansion. Financial management of the issuance will be handled by CDG Capital and BMCE Capital Conseil, both of which have been appointed as financial advisors and global coordinators.

In addition to expanding operations, the bond offering will help fund OCP’s green investment program, focusing on boosting the local industrial and mining value chains and fostering innovation within Morocco’s industrial ecosystem. As part of this program, OCP intends to sustainably increase its fertilizer production capacity from 12 million to 20 million tons by 2027.

OCP’s strategic goals under this investment plan include the production of one million tons of green ammonia, generating 5GW of clean energy, and producing 20,000 tons of fluorine along with 30,000 tons of intermediate products for lithium iron phosphate batteries by 2027.

The fundraising initiative represents a significant step in OCP Group’s commitment to sustainable industrial development, while offering long-term investment opportunities for Moroccan investors.