Morocco’s OCP Group, a global leader in phosphate and fertilizer production, has announced plans to raise MAD 5 billion ($500 million) through a bond issuance approved by the Moroccan Capital Market Authority (AMMC).
The subscription period is set for December 10 to 12, 2024, and will be limited to qualified Moroccan investors.
This initiative forms part of OCP’s ambitious green investment program for 2023-2027, with a total budget of MAD 130 billion ($13 billion).
The bond issuance will be managed by CDG Capital and BMCE Capital Conseil, acting as financial advisors and global coordinators.
The offering will include five non-listed tranches, designed to attract long-term investors. Tranches A and B will have a 10-year maturity with adjustable annual interest rates, while Tranches C, D, and E, with maturities of 15, 20, and 30 years respectively, will carry fixed rates.
OCP’s fundraising effort supports its broader strategy to enhance its industrial and mining operations while prioritizing sustainability and innovation. The company’s five-year investment program seeks to significantly increase production capacity, aiming to boost fertilizer output from 12 million tons to 20 million tons annually.
Additionally, OCP plans to produce one million tons of green ammonia, generate 5GW of clean energy, and develop advanced products, including 20,000 tons of fluorine and 30,000 tons of materials for Lithium Iron Phosphate batteries, by 2027.
A core focus of the investment program is the transition to renewable energy and the use of desalinated water in industrial processes. These measures align with OCP’s goal of achieving full carbon neutrality by 2040, solidifying its role as a pioneer in sustainable industrial practices.
To support its expansion and sustainability goals, OCP has already raised MAD 11 billion in debt from domestic and international banks during the first half of 2024. The company is also in discussions for additional loans exceeding $1 billion with global financial institutions.
