Morocco’s OCP Group, one of the world’s largest phosphate and fertiliser producers, has raised an additional $149.9 million through a tap issue, increasing the size of a 10.25-year tranche of its $1.5 billion hybrid bond transaction launched in April.

The additional issuance increases the tranche from $500 million to $649.9 million. The broader transaction was initially divided into two tranches with maturities of 5.25 years and 10.25 years.

The new perpetual subordinated bonds carry the same terms as those issued in April, including an early redemption option and the ability to defer interest payments. OCP said proceeds from the issuance will be used for general corporate purposes.

OCP expands hybrid bond financing

The bonds carry a fixed interest rate of 7.3682% until their first reset date on July 22, 2036. The tap issue was completed on September 14, with settlement and issuance taking place on September 21.

The new bonds will be consolidated with OCP’s April issuance effective November 2, 2026, after which they will form a single series.

The securities are listed on Euronext Dublin, with JPMorgan Securities plc acting as the initial purchaser.

The tap issue extends OCP’s access to international debt markets as the Moroccan phosphate giant continues to raise capital to support its broader corporate and investment activities.

OCP maintains investment-grade issuer rating

OCP, formally known as Office Chérifien des Phosphates, is a major global producer of phosphate rock, phosphoric acid and fertilisers. It remains the world’s largest exporter of phosphate rock and phosphoric acid. Output has increased significantly over time, reaching 16 million metric tons in 2025, compared with 3 million metric tons in 2008, according to company figures.

The transaction, which marked the return of Morocco’s state-backed phosphate and fertilizer producer to global debt markets with a $1.5 billion hybrid bond, marks the first issuance of its structure split into two tranches, offering investors different maturities and yields.

The 2031 portion was priced with a 6.74% coupon, while the 2036 tranche carried a 7.37% coupon. OCP has been playing a central role in the country’s economy and has expanded its international footprint through investments across the global fertiliser value chain.