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4w ago

Mexico to Issue Up to $10 Billion in Pre-Capitalized Notes to Support Pemex

The off-balance-sheet transaction via a Luxembourg vehicle is structured to close July 28 with amortizations through 2030 to ease the oil company’s cash crunch.

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Expertos señalan que los apoyos recientes del gobierno federal alivian a corto plazo, pero no resuelven los problemas estructurales de la empresa.
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Overview

  • The Treasury will close the off-balance issuance of $7–10 billion in pre-capitalized notes through Luxembourg SPV EFL I by July 28, transferring the liability to public debt.
  • JP Morgan serves as sole advisor with BofA Securities and Citigroup as joint bookrunners on the deal.
  • The notes mature in August 2030 and carry scheduled amortizations of about 14% in 2027, 43.5% in 2028, 14% in 2029 and 28.5% in 2030.
  • Following the announcement, Pemex bond prices recovered and five-year credit-default swaps tightened, and Fitch Ratings placed the company on Rating Watch Positive.
  • S&P Global Ratings and energy analysts warn the injection covers only 7–10% of Pemex’s financial debt and will not resolve its ongoing cash-flow deficits or deep-rooted operational challenges.