African Development Bank and Morocco's OCP Group Sign €450 Million Guarantee Agreement

en.Wedoany.com Reported - The African Development Bank Group and OCP Group signed a €450 million (US$511 million) partial credit guarantee agreement on May 22 in Rabat, aimed at supporting OCP's industrial transformation and long-term investment plan.

This agreement will help raise a €530 million (US$602 million) green financing facility arranged by Société Générale and BNP Paribas. The funds will be used to support OCP's 2023–2030 investment plan, which focuses on low-carbon fertilizer production, renewable energy deployment, sustainable water resource management, and industrial efficiency improvement.

The African Development Bank noted that this transaction is the first such mechanism in Morocco, reflecting its strategy to mobilize private and institutional capital for Africa's energy transition and resilient infrastructure projects. The bank stated that the financing will support a range of projects aimed at reducing greenhouse gas emissions, improving water and energy efficiency in OCP's industrial operations, and promoting sustainable agricultural practices and soil conservation.

Achraf Tarsim, Country Manager for Morocco at the African Development Bank Group, stated that the institution is leveraging its AAA credit rating to attract international capital for projects related to food security, renewable energy, and low-carbon fertilizer production. OCP Chief Financial Officer Younes Kchia stated that the agreement marks a "decisive step" towards a low-carbon and circular industrial model, adding that the funds will help the company invest in resource conservation, soil protection, and farmer support programs.

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