(Bloomberg) -- Morocco’s state-owned phosphates giant is teeing up bond sales and could potentially list its chemicals business as part of efforts to raise billions of dollars for decarbonization efforts.

OCP SA aims to raise between $5 billion and $7 billion through 2027 via bond sales as well as an initial public offering of its chemicals unit, a person with knowledge of the matter said. The firm could raise several hundred millions by listing its OCP Nutricrops unit, the person said, asking not to be identified discussing confidential information. 

No final decisions have been made on valuation or timing. OCP didn’t respond to requests for comments. 

The government owns more than 90% of the firm, which controls the world’s biggest known phosphate deposits and is the state’s most-prized asset. It’s seeking money to finance 130 billion dirhams ($12.3 billion) in investments over the next three years — primarily in projects that will aid a transition to carbon neutrality and end its status as the world’s top ammonia importer. 

The firm aims to produce 1 million tons of green ammonia by 2028, rising to 3 million tons by 2032. It kicked off its funding plans this week, mandating BNP Paribas SA, Citigroup Inc. and JPMorgan Chase & Co. to sell a dollar-denominated private bond.

Morocco has announced plans to sell down stakes in state entities as it navigates the economic shock waves from Russia’s war in Ukraine. 

Casablanca-based OCP has been evaluating a listing of its Nutricrops business since its inception in 2022. Those plans were accelerated after the unit obtained 30 billion dirhams in fertilizer production and marketing assets under a carve-out earlier this year and Morocco launched a national green hydrogen roadmap.

OCP has said the carve-out was essential to securing resources the group needs to achieve its ambitions. The assets transferred to Nutricrops include three fertilizer plants that are wholly-owned by OCP as well as its interests in two others it co-owns with Koch Ag, Energy Solutions and local institutional investors.

©2024 Bloomberg L.P.