(Pemex, 16.Oct.2018) — Petróleos Mexicanos in September disclosed the application of a series of operating and marketing measures could generate an improvement of 30 billion pesos on the 2018 balance sheet, placing the company at an approximate deficit of 49.414 billion pesos, instead of the deficit for 79.414 billion pesos that was originally approved by the Congress.
In line with the above, Pemex is reducing its debt outlook for 2018, this will focus exclusively on financing the updated deficit of 49.414 billion pesos. In the framework of the financing program authorized for 2018, today the company placed a bond in the international debt markets:
— The total amount of the bond is 2 billion American dollars, with a 10-year maturity.
— This placement’s maturity date is due on January 2029 and yields an interest rate of approximately 6.5 per cent for the investor.
The resources from this emission will be used to comply with Pemex’s investment program, as well as to liquidate or refinance debt to its favor. This operation strengthens the cash level for the end of 2018 and guarantees the company’s liquidity for the beginning of 2019.
The placements performed throughout the year are directed towards the appropriate functioning of the company in compliance with its Business Plan. During the issuance process, talks were held with the transition team for the new Federal Administration.
Investors, mainly from United States, Europe, Middle East, Asia, and Mexico participated in this transaction, which had a demand of 5.9 times the amount placed. Placement agents for this bond were HSBC, J.P. Morgan, Scotiabank and UBS.
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