Rabat- Morocco’s OCP Group (phosphates) raised USD 1.55 billion in its debut international bond sale to help finance a $17 billion investment plan.
Casablanca-based OCP sold USD 1.25 billion of 10-year bonds on Thursday to yield 5.75 percent, and issued USD 300 million of 30-year debt to yield 7.375 percent.
Proceeds will be used for capital expenditures and general corporate purposes.
OCP, the world’s biggest phosphate exporter, said in October it would invest 140 billion dirhams (USD 17 billion) to increase its market share of fertilizers to 40 percent by 2020. Its market share currently stands at 21 percent, OCP Chairman Mustapha Terrab told Le Matin newspaper last week.
A “favorable market risk environment was probably the main supportive factor, but the positive story of the company and Morocco’s improving external perception did help,” Samir Gadio, a London-based emerging markets strategist said.
Meryem Chami, OCP’s executive director of planning and steering, said in October that the company should capture half of expected growth in global demand for phosphate-based fertilizers by tripling production capacity and focusing on Africa and South America.
Last month, OCP signed an agreement to build four plants in Morocco and Gabon at a total cost of $2 billion to produce fertilizers for African markets intended to meet 30 percent of the continent’s needs.