Introduction to Pemex and its Financial Move
Petróleos Mexicanos (Pemex), Mexico’s state-owned petroleum company, has announced the issuance of a 30 billion peso debt instrument in the local market. This move was granted a AAA.mx credit rating by Moody’s Local, with a stable outlook for the proposed emissions.
Bond Structure and Terms
According to a communication sent to the Mexican Stock Exchange (BMV), Pemex will issue three tranches: Pemex 26, Pemex 26-2, and Pemex-U. The issuance will occur through vasos comunicantes (interconnected vessels), with the following terms:
- Bono Pemex 26: A five-year bond that will pay interest every 28 days at a variable rate tied to the Tasa de Interés Interbancaria de Equilibrio (TIIE).
- Bono Pemex 26-2: An eight-year bond that will pay interest semi-annually at a fixed nominal rate.
- Bono Pemex 26-U: A ten-year bond that will pay interest semi-annually at a fixed real rate, as per the national bursait market publication.
These certificates will be amortized through a single payment at maturity date and represent the first, second, and third issuances under a new long-term stock certificates program with a total amount of up to 100,000 million pesos or its equivalent in Unidades de Inversión (UDIS) with a five-year validity period.
Allocation of Funds and Credit Rating Rationale
The funds obtained from this bond placement will be allocated for general corporate purposes. The AAA.mx long-term senior unsecured local debt rating assigned to Pemex 26, Pemex 26-2, and Pemex 26-U certificates is supported by recent financial transactions executed in coordination with federal government entities. These actions aim to strengthen Pemex’s liquidity and facilitate the payment of its short-term liabilities.
Key Questions and Answers
- What is Pemex? Petróleos Mexicanos (Pemex) is Mexico’s state-owned petroleum company, responsible for exploration, production, refining, and marketing of oil and natural gas.
- What type of debt is Pemex issuing? Pemex is issuing a 30 billion peso debt instrument in the form of three bonds: Pemex 26, Pemex 26-2, and Pemex-U.
- What are the terms of these bonds?
- Bono Pemex 26: Five-year bond with quarterly interest payments based on the TIIE rate.
- Bono Pemex 26-2: Eight-year bond with semi-annual interest payments at a fixed nominal rate.
- Bono Pemex 26-U: Ten-year bond with semi-annual interest payments at a fixed real rate.
- How will the funds be used? The funds will be allocated for general corporate purposes.
- What credit rating did Pemex receive? Moody’s Local assigned Pemex a AAA.mx credit rating for these long-term senior unsecured local debt certificates.
