Views Article – Sharenet Wealth

News, North America

Mexico’s Pemex issues $5 bln in bonds to refinance debt

(Adds details of bond issues)

MEXICO CITY, Jan 21 (Reuters) – Mexican state oil firm Petroleos Mexicanos said on Tuesday it has issued $5.0 billion in bonds with 11-year and 40-year maturities, which it will use to refinance existing debt.

Pemex said part of the funds from the bond issues will be used to repurchase dollar-denominated debt maturing in 2020, and the remainder will be used for refinancing purposes.

It is the first time that Pemex, which has financial debt of around $99 billion, has issued a 40-year bond.

The 11-year bond has a coupon of 5.95%, and the 40-year bond a coupon of 6.95%.

President Andres Manuel Lopez Obrador inherited Pemex with $105.8 billion in financial debt when he took office in December 2018. His government has eased Pemex’s huge debt burden, providing $9.5 billion in support via capital injections, tax breaks and debt refinancing – in effect, transferring some of the company’s risk to the federal government.

(Reporting by Ana Isabel Martinez; Writing by Anthony Esposito; Editing by Muralikumar Anantharaman and Leslie Adler)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )