Mexico injects nearly $14 billion in Pemex following fresh debt offers

Mexico's Finance Ministry announced on Wednesday that it will inject almost $14 billion in the highly indebted Pemex state oil company after raising funds from two recent bond issues on international markets.

dollar-denominated

euro-denominated

Bond issues will be largely used to fund

Buy back Pemex bonds worth $9.9 billion

The Finance Ministry said that the buyback was closed early due to the demand exceeding the offer.

The ministry stated that this will "smooth" the maturity profile of Pemex’s debt, since the company has payments due in 2026 or 2027.

Pemex has a debt of nearly $100 billion, and another $22 billion is owed by suppliers and contractors.

The government has announced that it will be implementing a new policy in August.

A comprehensive plan was rolled out

By 2027, the government will stop providing financial assistance to the company.

The ministry stated that the transactions would reduce Pemex’s foreign currency obligations previously contracted, in order for the company to be able to improve its credit and liquidity profiles while reducing financing costs. (Reporting Ana Isabel Martinez and Kylie Madry).

(source: Reuters)