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OMV Agrees Sale Of Clean Ammonia Project

CAPITAL GOODS

Baa3[N]/BBB-/BBB-[N] EUR 25s +15bp

  • OCI NV equity is the best performer from the €IG space though the spread on their sole EUR 25s (secured) is +15bp.
  • The fertiliser/chemicals producer has announced the sale of it’s Clean Ammonia project to Woodside Energy for USD 2.35bn, cash-free and debt-free, with 80% paid at closing and the remainder at project completion. OCI to oversee construction, commissioning, and startup; full operational handover post-completion expected in H2 2024. Use of sale proceeds unspecified.
  • No visibility on bond docs; BBG notes a CoC covenant at 101 but the bond trades at EUR 99 and has moved further from par.

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