OCP raises $1.5 billion in its first international hybrid bond deal

As first reported by Médias24, OCP has completed its first international hybrid bond issue, the first such transaction by an African company. The deal was successfully closed on Wednesday, April 15, 2026, for a total of $1.5 billion.

The offering drew strong demand, with the order book 4.6 times oversubscribed and participation from 176 investors across 23 countries. It comprises two tranches: a $1 billion NC5.25 tranche with a 6.74% coupon, and a $500 million NC10.25 tranche with a 7.37% coupon. BNP Paribas, Citi and J.P. Morgan acted as coordinators on the transaction.

A transaction designed to optimize the capital structure

The hybrid structure allows OCP to fund its growth strategy while maintaining leverage ratios consistent with its investment-grade profile, thanks to the favorable treatment of the instrument under accounting standards and by rating agencies.

From an accounting standpoint, the instrument is treated as 100% equity under IFRS. Moody’s and S&P assign it 50% equity credit. The notes were rated Ba2 by Moody’s and BB by S&P, while OCP’s issuer rating was confirmed in the investment-grade category at Baa3/BBB-.

The outcome of the deal underscores the strength of OCP’s fundamentals and its standing as a solid credit in the eyes of investors, especially as hybrid instruments remain rare across the CEEMEA region (Central and Eastern Europe, the Middle East and Africa).

A fertilizer market under geopolitical strain

As noted in our previous article, the transaction comes at a time when the global phosphate fertilizer market is tightening, with structurally firm demand and growing supply-side constraints. The closure of the Strait of Hormuz following the conflict in Iran has disrupted sulphur flows. The price of this feedstock, sourced from the Middle East, rose by 35% in April 2026 compared with late-February levels.

While supply has been affected by the war, demand remains robust, driven by food security concerns. It is expected to grow by 3% annually through 2030. Phosphate fertilizer prices are also trending upward, as the market remains structurally supply-constrained.

This dynamic further strengthens the position of integrated producers such as OCP. In 2025, the group reported revenue of $12.2 billion, up 25% year on year, and EBITDA of $4.6 billion. Net leverage stood at 2.76x EBITDA at year-end 2025.

À découvrir

Dette hybride. Au-delà de la levée, le modèle et les contraintes d’OCP

Settavex : une condamnation à 104 MDH, des actifs aux enchères

OCP prépare une émission obligataire hybride en dollars, une première dans sa structure de dette