Casablanca – OCP Group, Morocco’s leading phosphate producer, has secured approval from the Moroccan Capital Market Authority (AMMC) to issue an ordinary bond valued at $500 million. This bond issuance is part of the group’s broader strategy to finance its ambitious growth initiatives, which include expanding its phosphate production capacity and advancing its sustainability programs.

The bond, which is structured across five unlisted tranches, will have maturities ranging from 10 to 30 years. Investors will be able to choose from both fixed and variable interest rate options, tied to Morocco’s Treasury benchmark yield curve. Risk premiums will vary between 30 and 80 basis points, depending on the maturity of each tranche.

The subscription period for the bond will run from December 10 to December 12, 2024. The issuance is aimed at institutional investors and high-net-worth individuals. In line with its commitment to fairness, OCP has adopted a French allocation process to ensure an equitable distribution of bonds among bidders, without preference for any specific tranche.

The funds raised through this issuance will support OCP’s ongoing transformation. The company has committed to investing $13 billion between 2023 and 2027 to enhance its industrial processes and move toward full reliance on renewable energy and desalinated water. These efforts are central to OCP’s goal of achieving carbon neutrality by 2040.

In addition to this bond issuance, OCP has already raised $1.1 billion from national and international banks during the first half of 2024, as per the AMMC’s reports. The company is also in talks with lenders for further loans, with discussions ongoing since June 2024 for financing that exceeds $1 billion.

OCP’s decision to tap the bond market reflects its strategy to diversify its financing sources and strengthen its position as a global leader in the phosphate industry. With the Moroccan government’s backing, OCP continues to lead the world in phosphate production, holding over 70% of global reserves.

The bond offering is expected to attract significant investor interest as OCP builds on its track record of strong financial performance, including a 135% increase in its net profits in the first half of 2024. The company remains committed to maintaining its leadership in the agriculture and phosphate sectors while advancing its sustainability agenda.