OCP: The Group Will Repay Its 2016 Perpetual Bonds on December 23, 2026
OCP SA Announces Early Redemption of Perpetual Subordinated Bonds
OCP SA has decided to exercise its early redemption option on all six tranches of its perpetual subordinated bonds issued in December 2016. Scheduled for December 23, 2026, this operation will allow investors to recover 100,000 dirhams per bond, in addition to the last coupon due.
Ten years after their issuance, the perpetual subordinated bonds from OCP are approaching a strategic maturity. The phosphate group has announced the repayment of all outstanding securities, set for December 23, 2026.
This operation involves the six bond tranches, labeled A through F, issued in December 2016. It occurs at the first scheduled redemption date in the terms of the loan, which is ten years post-initial issuance.
Through this decision, OCP will conclude this bond loan and cease the associated coupon payments, following the settlement of the interests due on the redemption date.
OCP Activates Early Redemption Option at First Window
Unlike conventional bonds, perpetual bonds do not have a fixed maturity date. However, they may include early redemption windows, allowing the issuer to return capital to investors as defined in the issuance agreement.
In the case of the loan launched in December 2016, the first potential redemption date was set for December 23, 2026.
OCP has opted to activate this option for the six relevant tranches. This decision will result in the repayment of all outstanding bonds and the closure of this financing operation.
100,000 DH per Bond, Plus the Last Coupon
Holders of the relevant securities will receive an amount of 100,000 dirhams per bond, corresponding to the repaid nominal value. This sum will include the interest due for the last coupon, calculated according to the conditions specific to each tranche.
The centralization of the operation will be managed by CDG Capital, in coordination with Maroclear and the institutions responsible for maintaining investor accounts.
The overall amount of the disbursement will depend on the exact number of securities still in circulation within each of the six tranches, as well as the coupons to be paid.
Liquidity Released for Investors
For the holders of these bonds, the repayment will translate into the recovery of the invested capital and the release of liquidity that can be redirected towards other investments.
The prospects for reinvestment will particularly depend on prevailing interest rates and the characteristics of financial instruments available in the market at the time of the operation.
For OCP, this decision will result in a disbursement at the scheduled date but will also conclude the interest expenses associated with this bond issuance.
The December 23 repayment thus marks the closure of a financing initiative launched ten years earlier, through which the group mobilized resources in the form of perpetual subordinated bonds.
