Rabat – Morocco’s phosphates giant and world-leading fertilizers producer, OCP Group, has raised $2 billion in a dual-tranche Eurobond offering, Reuters reported on Friday.
According to the report, the proceeds from the bond will be channeled into OCP’s ambitious green transition plan aiming to eventually power all of the group’s facilities using green energy.
The Eurobond, structured into two tranches of $1.25 billion and $750 million, carries maturity periods – the length of time until the bond’s principal amount is due to be repaid to the bondholder – of 10 and 30 years respectively, with corresponding interest rates of 6.75% and 7.5%.
Reuters quoted OCP as indicating that the demand for subscriptions surpassed expectations, reaching an impressive $6.2 billion. The demand for the bonds represents 3.1 times the amount offered.
The bond issue was managed by international financial institutions including Citi, JP Morgan, and BNP Paribas.
OCP emphasized that the proceeds from the Eurobond will play a pivotal role in executing its comprehensive $13 billion investment plan spanning from 2022 to 2027.
Central to OCP’s investment strategy is the expansion of fertilizer production capacity, with an aim to elevate production to 20 million tons from the current 15 million tons.
In addition, OCP has set a course to transition to renewable energy sources, with a targeted timeline to achieve full reliance on renewables by 2027.
As well as enhancing its production capabilities, OCP’s investment plan includes initiatives to bolster self-sufficiency and reduce reliance on imports.
The company aims to produce 1 million tons of ammonia within the next three years, a move aimed at mitigating dependence on external suppliers and cushioning the company’s operation against external market shocks.
OCP Group aims to produce 200,000 tons of green ammonia by 2026, with plans to scale up to one million tons over the subsequent four years.
The group equally plans to increase total ammonia production to three million tons by 2032. This plan aligns with OCP’s commitment to achieving 100% usage of green ammonia in its products.
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