OCP Group, a global leader in phosphate-based fertilizers, has successfully raised an additional $149.9 million through a tap issue on its hybrid bond sold in April. This new issuance is linked to the 10.25-year tranche of the perpetual subordinated bond, which initially raised $500 million. The transaction was authorized by the Board of Directors on March 12 and utilized the prospectus exemption in paragraph 2.12 of Euronext Dublin’s Global Exchange Market listing rules for debt securities.
The new bonds carry the same features as the original issuance, including an early redemption option and an optional interest payment deferral. OCP plans to use the proceeds for general corporate purposes. The tap issue has a fixed interest rate of 7.3682% until the first reset date of July 22, 2036, and a denomination of $200,000, with integral multiples of $1,000 in excess of that amount. The bonds were placed under Regulation S (Category 2) only and settled on September 21.
The new bonds will form a single series with the April bonds as of November 2. J.P. Morgan Securities plc acted as the initial purchaser, and the bonds are listed on Euronext Dublin’s Global Exchange Market. OCP holds an issuer rating of Baa3 (stable) from Moody’s, BBB- (stable) from Standard & Poor’s, and BB+ (stable) from Fitch. The bonds carry an instrument rating of Ba2 from Moody’s and BB from Standard & Poor’s.
This tap issue builds on OCP’s inaugural international hybrid bond sold in April, which raised $1.5 billion across two tranches: $1 billion over 5.25 years at a 6.750% coupon, and $500 million over 10.25 years at 7.375%. The proceeds from the April sale went toward the group’s investment program and its general funding needs for 2026. Demand for the April sale was strong, with 90 international investors participating in a marketing day on April 14.
The order book for the April sale reached nearly $7 billion, more than four times the amount on offer. This strength allowed OCP to tighten pricing by 62.5 basis points and secure a negative new issue premium of about 15 basis points. Chairman and CEO Mostafa Terrab described the deal as “a major milestone for OCP” and pointed to “investors’ sustained confidence in the strength of our credit profile.”
Citigroup Global Markets, J.P. Morgan Securities, and BNP Paribas ran the books, with Rothschild & Co. advising. In addition to the April sale, OCP had also tapped the domestic market in June, closing a MAD 5 billion ($500 million) subordinated perpetual bond through a public offering across four tranches. This demonstrates OCP’s continued efforts to expand its financing capacity and support its long-term investment strategy.
The successful tap issue and previous bond sales demonstrate OCP’s ability to access international markets and attract investors. With a strong credit profile and solid investor confidence, OCP is well-positioned to achieve its investment goals and continue its growth as a leading phosphate-based fertilizer producer.
Key points
- OCP Group raises $149.9 million through a tap issue on its April hybrid bond.
- The new bonds have a fixed interest rate of 7.3682% and will form a single series with the April bonds.
- OCP’s successful bond sales demonstrate its ability to access international markets and attract investors.
