Mexico’s Petróleos Mexicanos (Pemex) is looking to turn its financial structure around in 2017 by placing, repurchasing, and exchanging bonds.
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Image from Pemex. |
Yesterday (3 October), Pemex CFO Juan Pablo Newman told reporters that the company sold US$4 billion in long-term bonds to buy back existing debt and prefund some its financial needs, in addition to carrying out a bond exchange at a price tag of about $1.6 billion, according to the Wall Street Journal.
Pemex’s efforts are aimed to improve its amortization profile, strategic investment projects, and its refinancing, the company said in a statement.
The Mexican state-led company is offering seven-year bonds at a yield of 4.62%, and the 30-year bonds at 6.75%.
Newman said that Pemex also used $1.5 billion to buy back bonds that come due in 2018 and 2019, and the remainder of around $2.5 billion will go toward 2017 financing needs.
Global investor participation came from the US, Europe, Middle East, Asia, and Mexico. Its offering, with an estimated demand of $8.7 billion, was oversubscribed by 2.2 times the total amount issued, the company confirmed.
“In an environment of high volatility in financial markets, this transaction reflects investor confidence in the opportunities arising from the implementation of the Energy Reform that encourage competitive development of Pemex and the oil sector in the country,” Pemex said.
Underwriters include Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities, MUFG Securities Inc. and Natixis Securities Americas Americas LLC.
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