OCP closes 5 billion dirham perpetual bond sale
OCP Group has completed a perpetual bond sale that has exceeded even the best expectations. The Moroccan fertiliser giant launched a public offering of perpetual subordinated bonds with different early redemption and deferred interest payment options, according to a press release issued by the Moroccan Capital Market Authority (ANMC). Total proceeds have reached five billion dirhams - just over 450 million euros - as reported by Maghreb Arab Express.
Total bond applications amounted to 70,680, representing a subscription amount of more than seven billion dirhams. These figures represent the market's confidence in OCP Group, but have led to an oversubscription of 141%, making it impossible to satisfy all the demand for the four types of bonds launched, all with different conditions and terms ranging from one year to 20 years.
The first tranche of bonds, "A", with an annual review, has a face rate of 3.7% and a risk premium of 60 basis points. Meanwhile, the "B" - 10-year review - has a rate of 4.77% and a risk premium of 70 basis points. The remaining two, "C" and "D", are reviewable every 15 and 20 years respectively, and have a face rate of 5.49% and 5.94%. In terms of risk premiums, the "C" has 95 basis points and the "D" 105 basis points.
OCP Group has demonstrated with this sale that its success is not limited to the data, which position it as a leading phosphate exporter. It is establishing itself as one of the leading international companies in the field of fertilisers, which is also serving the Moroccan economy, which also has a key player at a strategic level. This is not only because of its economic growth and financial benefits, but also because of the image it conveys abroad.
The work that OCP Group is developing in sustainable and responsible practices is not going unnoticed by organisations focused on this field. In fact, it has won international recognition for its role in "ensuring food security through the production of essential agricultural inputs". These were the signs, now confirmed by the successful bond sale, that OCP Group is gaining even more market power than it has had in recent years.
