OCP Group has secured backing to fund its shift to cleaner production, in a deal signed in Rabat.
The African Development Bank has agreed a €450m guarantee to support OCP’s investment plans. This will help unlock a €530m green loan from Société Générale and BNP Paribas.
The funding is part of OCP’s wider 2023 to 2030 programme to modernise its business and cut emissions. The deal also gives the company access to long-term international finance.
It is the first time this type of guarantee has been used in Morocco. It is a way to bring in new funding for clean energy and better water use, while supporting more sustainable farming.
Achraf Tarsim, the bank’s country manager in Morocco, said: “This agreement confirms the institution’s commitment alongside the OCP Group. The African Development Bank’s AAA rating helps mobilise international capital to accelerate low-carbon fertiliser production, expand renewable energy use and strengthen sustainable water management.”
He added: “These areas are key drivers for food security across the African continent.”
OCP’s chief financial officer, Younes Kchia, said: “This signing marks a decisive step towards a low-carbon and circular industrial model. The support of the African Development Bank strengthens our ability to invest in solutions that preserve resources, protect soils and support farmers.”
The money will go into projects to cut greenhouse gas emissions, grow renewable energy and improve how OCP uses water and energy across its industrial sites.
The impact is expected to be significant. The project aims to avoid more than 43 million tonnes of CO2 emissions between 2026 and 2038. They are also set to create thousands of jobs, with a focus on young people and women.
The deal supports OCP’s long-term target to reach full carbon neutrality by 2040. Its wider $13bn investment plan includes running all its industrial sites on clean energy by 2027, building desalination plants to stop using natural freshwater, and producing green ammonia for low-carbon fertilisers.
The financing structure, backed by legal advisers from Ashurst, is seen as a model that other African companies could follow to raise money on global markets.
