OCP S.A. announced that they raised USD 2.0 billion on the international bond markets, marking the largest-ever transaction undertaken by the group, according to a press release.
The group said it has issued a record-setting Eurobond of USD 2.0 billion, supporting the implementation of its ambitious Green Investment Program 2023-2027.
This new issue is composed of two tranches with maturities of 10 and 30 years, with respective amounts raised of USD 1.25 billion and USD 750 million, carrying attractive coupons of 6.75% and 7.50% respectively.
“This transaction is a testament to the renewed confidence of investors in OCP’s financial strength and vision for sustainable growth,” reads the press release, noting that “this success highlights the strength of OCP’s credit profile, which occupies a leading position in the global fertilizer market and has demonstrated robust industrial and financial performance in recent years.”
This marks a major milestone for OCP, its largest-ever transaction, providing essential funding for the USD 13 billion Green Investment Program. “It demonstrates investor confidence in OCP’s growth plans and environmental commitments,” emphasized the statement.
OCP’s recent bond, with historically tight spreads on the 10- and 30-year tranches, demonstrates “its ability to manage financing costs and secure favorable terms in global capital markets.”
“This achievement reflects investor trust in OCP’s vision and strengthens its position as a leading bond issuer,” reads the same document.
OCP’s Roadshow, gathering over 80 investors before the transaction, proved fruitful, underscoring “the group’s credit quality, transparent communication, and strong investor relations.”
Strong foreign investor interest led to an order book over USD 6.2 billion, more than 3.1 times the final transaction amount, indicating the appeal of OCP’s brand in the international market.
The funds raised will be used to support OCP’s new development cycle, which focuses on the ambitious Green Investment Program for 2023-2027, which has several key objectives across several fields.
In fertilizer production, OCP aims to fortify its green fertilizer capacity to 20 million tonnes annually by 2027, up from its current capacity of 15 million tonnes.
OCP is also taking a strategic approach to water and renewable energy, planning to achieve a renewable energy generation capacity of 5 gigawatts by 2027 through solar and wind power to meet their energy needs while reducing costs.
The Group also plans to achieve complete water self-sufficiency by 2024 through 100% non-conventional water usage, build a seawater desalination plant with a capacity of 560 million cubic meters per year by 2026, and target 100% renewable energy reliance by 2027.
This focus on sustainability extends to carbon neutrality, with a target of 2040 (Scopes 1 and 2 by 2030 and Scope 3 by 2040).
In green ammonia production, The Group plans to produce 1 million tonnes annually by 2027 to replace all current imports (around 2 million tonnes).
To minimize risks, the company said it uses solar, wind, and hydraulic energies to lower costs and assure consistent production, focusing on research and development of electrolysis technology to support green hydrogen production.
OCP announced that it is exploring new opportunities to diversify its product portfolio, particularly in phosphate lithium iron batteries (LFP) and fluoride production.
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