Mexico taps the debt markets again to support state oil company Pemex

For the second time in a week, the Mexican government has turned to international bond markets to support Pemex, its state-owned oil company. On Tuesday it issued bonds worth $8 billion.

IFR's fixed income news service reported the new offer. It will help Pemex to pay for a bond buyback of $9.9 billion launched earlier in this month.

Pemex reported that the buyback offer had been oversubscribed before the deadline for early tenders on Monday.

IFR reported that the federal bond offering on Tuesday was divided into three tranches: $1.5 billion of notes maturing 2031; $4 billion due in 2033; and $2.5 billion due in 2025. The pricing was lower than expected at first, indicating investor interest in the offer.

The deal comes after a bond issue of 5 billion euros launched on Monday. Mexico sold 12 billion dollars in July as pre-capitalized securities (P-Caps) for Pemex.

Pemex has a financial debt of around $100 billion, making it one of the most indebted companies in the world. The government announced a plan in August to stop its subsidies for the company. (Reporting and editing by Nia William; Kylie Madry)

(source: Reuters)