IFC Loans $110 Million to Fertilizer Producer for Solar Projects in Morocco
The four projects will have a combined capacity of 202 MW
International Finance Corporation (IFC) has signed an agreement with phosphate-based fertilizer producer OCP for a €100 million (~$110.5 million) green loan to build four solar projects of 202 MW in Morocco.
The projects will be constructed in the mining towns of Benguerir and Khouribga, home to Morocco’s largest phosphate reserves.
The project is part of OCP’s $13 billion Green Investment Program, which aims to increase its green fertilizer production and transition its operations to green energy by 2030.
The projects will help OCP achieve its goals of sourcing 100% of the company’s electricity needs through wind, solar, and cogeneration by 2027.
OCP Group Chairman and CEO Mostafa Terrab said, “Securing this loan is a testimony to the partnership we are building with IFC and the alignment of our institutions addressing the global challenges of food security and climate change simultaneously.”
IFC Managing Director Makhtar Diop commented, “Climate change and food security are deeply intertwined. With this investment, we are helping build a food system for Africa and the world that is both more sustainable and more secure.”
The projects align with IFC’s Global Food Security Platform, which is a $6 billion financing facility launched in 2022 to strengthen the private sector’s ability to respond to the food crisis and help support the sustainable production of food.
The projects also support IFC’s mandate to help emerging countries access private capital to implement climate-friendly projects, decarbonize their economies, and adapt to a warming planet.
In 2021, IFC provided OCP with a $100 million loan to support its subsidiary, OCP Africa, to increase the availability of fertilizers and improve training on practices on local soils and crops in Côte d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, Senegal, and Tanzania.
In March, IFC announced an investment of ₹3.75 billion (~$46 million) through sustainability-linked bonds issued by Tata Cleantech Capital to help the latter advance as a green financier while supporting its climate and sustainability targets.
Also in the same month, IFC announced an investment of ₹6 billion (~$72.9 million) in a subsidiary of Mahindra & Mahindra to expand the reach of affordable electric three-wheelers and small commercial vehicles.