OCP raises USD 2 bn in Eurobond issuance to fund decarbonization efforts

OCP secures USD 2 bn from Euro bond: Morocco’s phosphates and fertilizers producer OCP has successfully raised USD 2 bn through a dual-tranche Eurobond, OCP told Reuters by email on Friday. The issuance was 3.1x oversubscribed with the order book reaching USD 6.2 bn. Citi, JP Morgan and BNP Paribas were the advisors for the bond issuance.

What we know: USD 1.25 bn of the total bond sale will have a 10 year maturity period with an interest rate of 6.75%, while the other USD 750 mn tranche will have a 30 year maturity and an interest rate of 7.5%.

Where’s the money going: OCP started the road show for its international bond last week, announcing that the proceeds will be earmarked for OCP’s USD 13 bn strategy to transition its industrial processes entirely to renewable energy by 2027. The firm also plans to use the funds to invest in green hydrogen for ammonia production and desalination projects.

OCP’s eyeing an IPO to drum up decarbonization funds: The fertilizer giant is potentially looking to list its recently launched chemicals unit OCP Nutricorps to finance more of its ambitious decarbonization plans.