OCP plans international bond worth up to $2 bln to fund development plan

Morocco’s phosphates and fertilizers giant, OCP, plans a bond issue ranging between $1.5 billion and $2 billion as it launched major investments in renewable energies, desalination, green hydrogen, and ammonia.

The news, relayed by Medias24 and major news agencies, marks the first bond by OCP since it announced an ambitious growth strategy of about $12 billion to develop fertilizers production and ensure the group meets its ammonia needs domestically.

OCP has mandated BAN Paribas, Citi, JP Morgan to lead the bond, the second major bond by the company after it successfully raised $1.5 billion in a dual-tranche bond in 2021.

OCP reported in 2023 total earnings of 9 billion dollars, down from 11.4 billion a year earlier. Fertilizers made up 66% of OCP’s revenue, as the group continues to enhance its production capacity.

OCP explained the performance by a drop of prices from the exceptional levels of 2022, when the war in Ukraine triggered a surge in commodities prices globally.

The group’s profit stood at 1.4 billion dirhams, nearly half levels of 2022, OCP said.