Rabat – The OCP Group, Morocco’s giant fertilizer group, has conducted its hybrid bond issuance on global capital markets for a total amount of $1.5 billion.
Financial Afrik reported on Wednesday that the Moroccan group has launched Africa’s first hybrid corporate bond issuance in dollars. After engaging in a “series of calls “ with institutional investors.
“BNP Paribas, Citi, and J.P. Morgan has been appointed as bookrunners. The operation will involve perpetual subordinated bonds with floating coupons,” the same source said.
Converging reports also quoted a statement from the giant group, which emphasized that the transaction is historic as it is the first US dollar-denominated hybrid ever issued by the OCP.
The importance of the transaction also lay in the sense that it is the first instrument of its kind issued by an African corporation on international markets.
For the group, such a transaction represents a major milestone for its financing strategy, conjuring the OCP’s strong standing within the global institutional investor community.
The operation, arranged by BNP Paribas, Citi and JP Morgan, received strong demand from investors that have been subscribing to the offer 4.6 times over.
According to reports, a total of 176 investors from 23 countries took part, with interest rates set at 6.74% for the portion maturing in 2031 and 7.37% for the portion maturing in 2036.
The issuance reflects OCP’s strategy to continue improving its financial structure, allowing the company to fund its growth.
Last year, OCP also celebrated the completion of an additional $300 million bond issuance.
This additional issuance is linked to OCP‘s May 2024 $2 billion international bond, the group said.
The bonds will be fully fungible with those issued in May 2024. The group has been using the funds to finance its projects and programs.
In February, OCP reported strong financial results for last year. Revenues rose by 17% to reach £11.4 billion.
OCP posted revenues of more than MAD 29.5 billion ($3.19 billion) in the fourth quarter alone, marking a 6% increase compared to the same period last year.
The group attributed this performance to its resilience in a market where demand became more moderate after some key regions had built up stocks earlier.