OCP Group will issue 5 billion dirham bonds as part of its green investment programme
OCP Group, the Moroccan state-owned company responsible for the world's largest phosphate reserves, plans to issue bonds worth 5 billion dirhams (500 million dollars) between 10 and 12 December this year.
The Moroccan Capital Market Authority (AMMC) issued a press release on Tuesday announcing the upcoming issuance of OCP bonds.
These bonds are part of OCP's broader investment strategy that supports the company's ongoing projects and growth plans. The large Moroccan fertiliser company (OPC), offering various maturity options, aims to attract qualified investors interested in long-term financial opportunities. The bonds will be managed by CDG Capital and BMCE Capital Conseil, who have been appointed as financial advisors and global coordinators.
The bond issue, according to AMMC, will comprise five unlisted tranches. Tranches A and B will have a maturity of 10 years, while tranches C, D and E will have maturities of 15, 20 and 30 years, respectively. The interest rate of Tranche A will be adjusted annually, however, the rates of the other tranches will remain fixed.
OCP Group Green Investment Programme
The fundraising takes place within the framework of the implementation of a green investment programme covering the period 2023-2027. The programme has a budget of 130 billion dirhams (13.05 billion dollars) and focuses on strengthening local industrial and mining value chains and promoting Morocco's industrial innovation.
In the same way, the programme focuses on increasing fertiliser production capacity and a commitment to achieve carbon neutrality by 2040 using only renewable energy sources.
Some of the objectives of the expansion plan include supporting 600 SMEs, creating 25,000 jobs and increasing fertiliser production capacity to 20 million tonnes by 2027.
They also include producing one million tonnes of green ammonia, generating 5 GW of clean energy and 30,000 tonnes of intermediate products for lithium iron phosphate batteries by 2027.
OCP's strong performance is attributed to strong demand from the European and African markets, sustained interest in solid acid products in Europe and growing demand from India. Through June this year, OCP reported revenues of 4.35 billion dollars, up from 3.8 billion dollars in the same period last year.
OCP Group's financial growth
The Moroccan fertiliser giant has been strengthening its financial position and growth with revenues of about 69 billion dirhams (6.8 billion dollars) in September. This compares with September of the previous year when it grossed 61 billion dirhams (6 billion dollars).
This is due to favourable market conditions as they themselves expressed in a report: ‘OPC Group has shown strong financial and operational performance since the beginning of the year, with double-digit growth in its key financial indicators’.
The report also highlights the key partnerships OPC signed with global partners and an agreement with ENGIE to accelerate the energy transition and actively contribute to Morocco's energy transition.
It also outlines the 100 million euro loan from the International Finance Corporation (IFC) to increase the sustainable supply of water for fertiliser production, as well as for farmers and households in Morocco.