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Moroccan fertilizer giant OCP has launched an investor roadshow for an international bond worth up to USD 2 bn, Reuters reports, citing sources with knowledge of the matter. This marks the company’s first bond issuance since announcing its green energy shift in 2022, after its USD 1.5 bn dual-tranche issuance in 2021.
Where will the funds go? The funds raised will support OCP’s development plan, which includes a USD 13 bn strategy to transition entirely to renewable energy for its industrial processes with plans to invest in green hydrogen for ammonia production and desalination projects. OCP plans to power all of its industrial facilities with clean energy by 2027.
OCP has been reeling in funds: The fertilizer company received a total of USD 188 mn in loans for desalination and renewable energy storage projects from the African Development Bank (AfDB), the Clean Technology Fund (CTF), and the Canada-African Development Bank Climate Fund (CACF) back in February. The group also secured an initial USD 18.3 mn green concessional loan from the CACF back in November to expand its desalination efforts in Africa.
Advisors: JP Morgan, Citi, and BNP Paribas have reportedly been appointed to manage the bond issuance, according to the newswire.
OCP has been busy: The company contracted South Korean chemical company LG Chem last month to supply desalination devices. It also formed a JV with Australian green energy firm Fortescue to develop green hydrogen and ammonia projects in Morocco earlier this month.
