OCP Group Successfully Completes Historic Hybrid Bond Issuance of $1.5 Billion
OCP Group Makes History with First Hybrid Bond Issuance on International Markets
The OCP Group (Moroccan Phosphate Office) has announced the successful completion of its inaugural hybrid bond issuance on international markets, amounting to a total of $1.5 billion. This marks a significant milestone as the first of its kind on the African continent.
A Groundbreaking Operation in Africa
According to the company, this issuance is a major step forward, being both its first operation of this type denominated in dollars and the first hybrid bond issuance by an African company on international markets. It highlights the growing positioning of OCP on the global financial stage and underscores institutional investors’ confidence in its strategy and financial strength.
Strong Demand from Investors
The issuance generated remarkable interest, with demand surpassing 4.6 times the proposed amount. A total of 176 investors from 23 countries participated in this issuance. The coupons were set at 6.74% for the tranche maturing in April 2031 and at 7.37% for the tranche maturing in April 2036, reflecting the attractiveness of the offer in a volatile market environment.
Confidence Reinforced Amid Uncertain Conditions
This issuance was structured by major international financial institutions, including BNP Paribas, Citi, and JPMorgan Chase. It confirms the robust credit profile of OCP Group and its ability to access international markets under competitive conditions, despite an uncertain geopolitical landscape.
A Lever for Growth and Capital Optimization
This issuance is part of a broader strategy aimed at optimizing the group’s capital structure. It will finance its development projects while maintaining debt ratios that adhere to "Investment Grade" classifications. Additionally, these instruments benefit from favorable treatment under IFRS standards, being considered 100% as equity, while rating agencies account for them at 50%.
A Strong Signal for African Leadership
With this operation, OCP Group solidifies its status as a leader in Africa and a key player in international markets. This initiative reflects its ability to innovate in financing and to support sustainable growth in an evolving global economic environment.
