Morocco’s OCP secures $1.5bn funding amid tightening fertiliser markets
The transaction also helped reopen Middle East and North Africa (Mena) primary bond markets after more than a month of inactivity linked to volatility stemming from the Iran conflict.
OCP's inaugural dollar hybrid was split into two tranches: one maturing in April 2031 with a 6.74% coupon, and another in April 2036 with a 7.37% coupon, according to the company document detailing the issuance.
The bonds were arranged by BNP Paribas, Citi and JPMorgan.
Demand was strong despite geopolitical uncertainty, with the order book reaching just under $7bn, equivalent to 4.6 times oversubscribed, prompting OCP to increase the size of the transaction, the document showed.
A total of 176 investors from 23 countries participated.
Strong demand despite geopolitical volatility
The issuance comes amid tightening global fertiliser markets driven by supply constraints following tensions linked to the Iran conflict and China’s export restrictions.
The document, whose authenticity was confirmed by a senior company source, said disruptions to sulphur supply, a key fertiliser input, following the closure of the Strait of Hormuz, have pushed Middle East sulphur prices about 35% higher in April compared with pre-conflict levels.
OCP has secured sufficient sulphur inventory to cover operational needs through at least the end of June, with diversified sourcing options including Kazakhstan, Canada, Europe, the Gulf of Mexico and the Red Sea.
Fertiliser markets tighten amid supply shocks
The company has increased its production capacity to 16 million metric tons in 2025 from 3 million metric tonnes in 2008.
To mitigate higher input costs, the company has increased production of triple superphosphate (TSP), which requires less sulphur and no ammonia compared with diammonium phosphate (DAP), the document said.
TSP accounted for around 30% of volumes in 2025, with a target of more than 50% in 2026, according to OCP.
Earlier this month, OCP said it was bringing forward maintenance work originally scheduled for the third and fourth quarters to the second quarter, which would result in a 30% production cut.