LONDON, Sept 22 – State-owned Moroccan phosphates and fertilizer producer OCP S.A. has raised $149.9 million through a tap issue of its 10.25-year tranche of perpetual subordinated hybrid bonds, expanding an international debt transaction first launched in April.
The new securities were issued under an authorization granted by OCP’s Board of Directors on March 12 and will be consolidated with the existing bonds issued under the same tranche. The transaction was conducted under the prospectus exemption provided by paragraph 2.12 of Euronext Dublin’s Global Exchange Market listing rules for debt securities.
The additional bonds retain the terms of the original April issuance, including an early redemption option and the ability to defer interest payments. OCP intends to use the proceeds for general corporate purposes.
The tap issue carries a fixed coupon of 7.3682% through the first reset date on July 22, 2036. The bonds have a minimum denomination of $200,000, with additional increments of $1,000, and were offered exclusively under Regulation S, Category 2.
The transaction was priced on September 14 and settled on September 21. The new securities are scheduled to become part of a single series with the April bonds on November 2. J.P. Morgan Securities plc served as initial purchaser, while the bonds are listed on Euronext Dublin’s Global Exchange Market.
Expanding OCP’s international hybrid financing
The tap issue builds on OCP’s inaugural international hybrid bond transaction in April, which was the first issuance of its kind by a corporate issuer on the African continent.
The original offering raised $1.5 billion across two tranches. The first comprised $1 billion of 5.25-year securities carrying a 6.750% coupon, while the second raised $500 million through the 10.25-year tranche at a 7.375% coupon.
OCP said the April proceeds were intended to support its investment programme and broader funding requirements for 2026.
Investor demand was strong during the transaction. OCP’s marketing exercise on April 14 attracted around 90 international investors, while the order book reached nearly $7 billion, more than four times the amount initially offered.
The demand enabled OCP to reduce pricing by 62.5 basis points and achieve a negative new issue premium of approximately 15 basis points.
Chairman and Chief Executive Officer Mostafa Terrab described the transaction as “a major milestone for OCP”, while highlighting “investors’ sustained confidence in the strength of our credit profile.”
Citigroup Global Markets, J.P. Morgan Securities and BNP Paribas acted as bookrunners on the April transaction, with Rothschild & Co. serving as adviser.
OCP maintains access to domestic and international markets
OCP’s latest international transaction follows a separate fundraising exercise in Morocco’s domestic capital market.
In June, the group completed a MAD 5 billion ($500 million) subordinated perpetual bond offering through a public issuance structured across four tranches.
OCP currently carries issuer ratings of Baa3 with a stable outlook from Moody’s, BBB- with a stable outlook from Standard & Poor’s, and BB+ with a stable outlook from Fitch. The hybrid bonds are rated Ba2 by Moody’s and BB by Standard & Poor’s.
The latest tap issue provides OCP with additional funding while extending the size of its international hybrid bond programme without creating a separate series of securities.
