In a move to fuel its strategic initiatives, OCP SA has announced a major bond issuance valued at up to 5 billion Moroccan dirhams (MAD). The offering, approved by the Moroccan Capital Market Authority (AMMC) under reference VI/EM/036/2024 on December 3, 2024, demonstrates OCP’s commitment to driving long-term projects and expanding its financial footprint.
The bond issuance is divided into five unlisted tranches, catering to investors with diverse investment strategies and time horizons.
- Tranche A: A 10-year maturity with an annually adjustable interest rate ranging between 3.06% and 3.16%.
- Tranches B to E: Fixed-rate bonds with maturities spanning 10, 15, 20, and 30 years, offering rates between 3.76% and 5.19%, depending on the maturity and risk premium.
Each bond is priced at a nominal value of MAD 100,000, with principal repayment in a single payment at maturity. Tranche-specific caps range from MAD 500 million to MAD 3 billion, while the total cap for the operation remains MAD 5 billion.
The interest rates for these bonds are calculated using the Moroccan Treasury’s reference yield curve published by Bank Al-Maghrib, combined with a tranche-specific risk premium. This ensures competitive and market-aligned returns for investors.
Allocation will follow the French auction system, with no preference given to specific tranches, and the bonds will be traded over-the-counter (OTC), providing institutional investors with greater flexibility.
The subscription period runs from December 10 to December 12, 2024. Participation is exclusively available to qualified Moroccan institutional investors, as defined in the AMMC-approved prospectus. Notably, the offering is not open to U.S. residents or entities.
By leveraging this 5-billion-MAD bond program, OCP SA is doubling down on its strategic vision, ensuring sustainable growth while offering attractive opportunities to Morocco’s financial sector. As one of the country’s flagship enterprises, OCP continues to solidify its reputation as a driver of innovation and economic progress.
