Morocco’s OCP Group will repay all outstanding bonds from a perpetual subordinated debt issue dating to December 2016, exercising its contractual early redemption option at the first available opportunity.
The phosphate and fertiliser producer announced that repayment will take place on December 23, 2026, exactly 10 years after the bonds were issued.
The transaction covers all outstanding securities across six tranches, classified A through F. Bondholders will receive the nominal value of MAD 100,000 per bond, plus interest accrued and payable on the redemption date.
Unlike conventional bonds, perpetual securities have no fixed maturity date. Their issuers can, however, retain the right to redeem them under conditions established when the debt is issued.
OCP’s decision therefore represents the exercise of an existing contractual option rather than repayment of debt reaching a mandatory maturity.
The bonds are also subordinated, meaning holders rank below ordinary creditors in the repayment hierarchy under the terms of the issue.
The original financing agreement was signed on December 8, 2016, with the representative of bondholders. Morocco’s Capital Market Authority (AMMC) approved the final offering memorandum the following day.
CDG Capital will coordinate the redemption and settlement process with central securities depository Maroclear and the financial institutions holding investors’ accounts.
OCP has advised bondholders to contact their custodians for operational details. The December 23 repayment will terminate the group’s obligations on the remaining securities across all six tranches. OCP did not specify the total amount outstanding in its announcement.
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