RABAT, April 16 – Morocco’s phosphates giant and world-leading fertilizers producer, OCP Group has raised $1.5 billion through its first international hybrid bond, becoming the first African company to issue a U.S. dollar-denominated hybrid instrument on global markets.
The deal marks a reopening of Middle East and North Africa primary bond markets after weeks of inactivity caused by volatility linked to the Iran conflict.
The issuance was split into two tranches, with bonds maturing in 2031 offering a 6.74% coupon and those due in 2036 priced at 7.37%. The transaction was arranged by BNP Paribas, Citigroup and JPMorgan Chase.
Investor appetite remained strong despite global uncertainty, with the order book nearing $7 billion, about 4.6 times oversubscribed. A total of 176 investors across 23 countries participated, allowing OCP to increase the size of the offering.
The fundraising comes as global fertilizer markets tighten due to supply disruptions linked to the Middle East crisis and export restrictions from China. Prices for Sulphur, a key input, have surged roughly 35% following disruptions around the Strait of Hormuz.
OCP said it has secured sufficient sulphur supplies to sustain operations through at least June, sourcing from diversified markets including Kazakhstan, Canada, Europe, the Gulf of Mexico and the Red Sea.
To manage rising input costs, the company is shifting production toward triple superphosphate (TSP), which requires less sulphur and no ammonia compared to other fertilizers. TSP accounted for about 30% of output in 2025 and is expected to exceed 50% by 2026.
OCP has significantly expanded its production capacity over the years, reaching 16 million metric tons in 2025 from just 3 million metric tons in 2008, reinforcing its position as a key player in global fertilizer markets.
However, the company has also brought forward scheduled maintenance, which is expected to temporarily reduce production by about 30% in the near term.
