Mexico completed a debt offer of US $ 12,000 million that will support the state Petróleos Mexicanos, the world’s largest oil company.
The offer, whose price was set on Monday, consists in debt called dollars in expiration in August 2030, according to a person familiar with the matter. The price of the operation was set at 170 basic points on treasure bondsbelow the initial price of 200 basic points, added the person, which requested anonymity because the information is private.
The issuance is carried out through precapitalized values, or P-Caps, a type of instrument used in the financing supported by assets that will allow Mexico to support Pemex, maintaining the obligations outside its accounting. It is greater than originally planned. Bloomberg News reported last week that Mexico was looking to raise Up to US $ 10 billion with the transaction, as part of a government plan of President Claudia Sheinbaum to underpin the state oil companywhich faces difficulties and accumulates a debt of almost 100 billion dollars, according to the results of the company published on Monday.
Also on Monday, Pemex reported a net profit of US $ 3,200 million for the second quarter, Your first gain in more than a year. The profits were driven by exchange fluctuations, since the weight was strengthened before a rebound in risk assets, and also benefited from a decrease in the cost of sales.
P-Caps
Mexico, through the Eagle Funding Luxco entity, will sell the so-called P-Caps and use the funds to buy a debt portfolio of the US government, including treasure bonds, according to a document presented last week. Pemex will take this portfolio as a guarantee for loans through the repurchase market, using the funds as appropriate, according to a offer memorandum to which Bloomberg had access.
If Pemex cannot pay the loans, the banks will seize the guarantees and will be unscathed. In that case, P-Cap investors would lose their guarantees and would be left with sovereign debt of Mexico, according to a presentation seen by Bloomberg.
Fitch Ratings placed Pemex in positive observation on July 22, stating that, if successful, The transaction will improve the support of the Mexican government to the company. The reevaluation could result in an improvement of several levels for the drilling, to the BB category, according to Fitch.
