OCP: Success of a new international bond issue for 1.5 billion dollars and partial buyback of 2024-25 bonds

In accordance with the authorization of its Board of Directors and of the General Assembly dated June 4, 2021, OCP SA announced that it had successfully carried out a bond issue on the international markets for a total amount of USD 1.5 billion. .

This new issue is made up of two tranches with maturities of 10 and 30 years, with respective coupons of 3.750% and 5.125%. OCP plans to use the funds raised for the financing of the second phase of its investment program as well as for the partial buyback of its existing international bonds maturing in 2024 and 2025, in order to lengthen the maturity profile of its debt. “The success of this international bond issue testifies to the quality of the OCP Group’s signature with international investors.

In addition, the objective of this proactive OCP approach is to optimize our financial structure by taking advantage of changing market conditions. »Says Mostafa Terrab Chairman and CEO of OCP. This transaction was a resounding success illustrated by the following indicators:

• Operation more than 4.7 times oversubscribed for a total of approximately $ 7 billion for the two tranches, allowing a significant tightening of the rates for the two maturities.

• A negative new issue premium of -10 basis points for the two tranches and the lowest rates achieved by the Group on these maturities.

• The largest order book produced in Africa, all sectors combined, this year.

• The largest 30-year tranche ever by an industry company in the MENA region. The bonds are listed on EURONEXT Dublin and are rated (BB + / stable) by Fitch Ratings and (BB + / stable) by Standard & Poors.

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The co-lead banks mandated for the issuance and implementation of the liability management operation are Barclay’s, BNP Paribas and JPMorgan. OCP was advised on this transaction by Rothschild & Co.

The characteristics of the bond loan are as follows:

These bonds have been placed with qualified institutional investors, fund managers, banks and private banks in various countries including Morocco, the United States, the United Kingdom, as well as more widely in Europe, the Middle East and Asia.

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