State-owned oil company Petróleos Mexicanos (Pemex) has issued two series of notes totaling US$1 billion, guaranteed by the US Export-Import Bank.
Pemex is using the proceeds from the sale of the notes to purchase goods and services from US manufacturers and suppliers for onshore and offshore oil and gas exploration and production through Pemex Exploración y Producción (PEP).
A series of $500 million floating-rate notes due 2025 was priced with an interest rate of three-month LIBOR plus 35 basis points, with a second series of $500 million fixed-rate notes due 2025 priced with an interest rate of 2.378% per annum.
Milbank, Tweed, Hadley & McCloy represented the international banks -- BNP Paribas, Citigroup and Santander — acting as initial purchasers/underwriters.
Helfried Schwarz, New York-based partner in Milbank’s Transportation and Space Finance practice group, led the deal team along with New York-based Securities partner Arnold Peinado and special counsel Kevin MacLeod.
“Investors are showing keen interest in Mexico’s energy sector as the country continues to relax restrictions on foreign participation in resource development,” Mr. Schwarz said. “As a result of these transactions, Pemex is able to substantially increase its own commerce with a wide range of US-based suppliers for advancing production of oil and gas assets.”
Milbank has advised on six previous Pemex offerings using the Ex-Im Bank guaranteed notes structure, including three offerings in 2012 totaling $1.2 billion, and three offerings in 2013 totaling $1.5 billion.
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