OCP SA will redeem all outstanding subordinated perpetual bonds from its 2016 issue on December 23, 2026. The redemption covers all six tranches. Investors will receive the face value of 100,000 dirhams per bond, plus the coupon due on that date.

OCP exercises its option on the first eligible date

Under the terms of the issue, December 23, 2026, is the earliest date on which OCP can redeem the bonds, exactly ten years after they were issued. The company has chosen to exercise that option on all outstanding bonds across tranches A through F.

Perpetual bonds have no fixed maturity. Their terms can give the issuer the right to repay investors on specified dates. By exercising that right at the first opportunity, OCP will end coupon payments on the issue after settling the interest due in December.

Bondholders will receive the principal and final coupon

CDG Capital will coordinate the redemption with Maroclear and the institutions that administer investors’ securities accounts. The total payment will depend on the number of bonds still outstanding and the coupon payable on each tranche.

For bondholders looking to reinvest the proceeds, the returns available will depend on market interest rates and the securities on offer in December. For OCP, the redemption brings the principal repayment and final coupon payment together on a single date, ending its interest obligations on the 2016 issue.