Morocco’s Phosphate Giant OCP Raises $1.5bn in Landmark Bond Deal

August 22, 2026
By Mintesinot Nigussie

Morocco’s OCP Group has raised 1.5 billion US dollars through its first international hybrid bond, becoming the first corporate issuer in Africa to complete a hybrid bond transaction of this type.

The subordinated perpetual bond, which includes early redemption options and allows OCP to defer interest payments, will help finance the group’s investment programme and general funding needs for 2026.

The transaction is designed to increase OCP’s financial flexibility, strengthen its credit metrics and diversify its long-term funding structure through hybrid instruments in international capital markets, the company said.

Investor demand reached nearly 7 billion US dollars across the two tranches, more than four times the amount offered. Strong demand enabled OCP to tighten pricing by 62.5 basis points during the transaction and achieve a negative new issue premium of about 15 basis points.

The issuance followed a marketing day on April 14 that brought together 90 international investors, reflecting strong interest ahead of the transaction, according to OCP.

The bonds are listed on Euronext Dublin and are rated Ba2 by Moody’s and BB by S&P Global Ratings.

“This inaugural hybrid issuance in international markets, a first for an African corporate issuer, represents a major milestone for OCP and, more broadly, for the development of capital markets across the continent,” Mostafa Terrab, chairman and chief executive of OCP Group, said.

Terrab said the transaction demonstrated OCP’s ability to mobilise alternative financing solutions to optimise its capital structure and support its long-term growth strategy.

Citigroup Global Markets, J.P. Morgan Securities and BNP Paribas acted as joint bookrunners, while Rothschild & Co advised OCP on the transaction.

Source: FSX Business News