OCP has raised MAD 5 billion from investors in a bond sale that was fully subscribed, giving the phosphate giant fresh cash as it pushes ahead with major industrial and sustainability projects.
The money was raised through a special type of bond that helps companies secure long-term funding while strengthening their finances.
The entire offering was bought by institutional investors, including investment funds, insurance companies and pension funds.
The deal is OCP’s fourth issuance of this kind in Morocco and follows a similar operation on international markets.
For OCP, the funding provides extra breathing room as it continues investing heavily in new projects. The group has been expanding production, developing greener operations and increasing investments aimed at meeting growing global demand for fertilizers.
The bonds sold in the operation do not have a fixed maturity date, making them a source of long-term funding. They also give OCP more flexibility in managing its finances than traditional debt.
One of the key features of the bonds is that OCP has the option to redeem them early and can also defer interest payments under certain conditions. These features make the instrument more flexible than standard bonds and help strengthen the group’s financial position.
The transaction was split into four tranches to attract different types of investors. Interest rates for the first year range from 2.87% to 4.82%, depending on the tranche. Each bond has a face value of MAD 100,000.
The full subscription of the offering highlights strong appetite from Morocco’s institutional investors, including mutual funds, insurance and reinsurance companies, and pension funds.
OCP said the operation had been planned as part of its long-term financial strategy. The goal is to secure funding for future investments while maintaining a solid financial position.
The deal was advised by CDG Capital and Attijari Finances Corp., while CDG Capital and Attijariwafa Bank handled the placement.
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