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Mexico Unveils Financial Maneuver to Stabilize Debt-Laden Pemex
MEXICO, JUL 22 – Mexico's Finance Ministry plans to raise up to $10 billion through Pre-Capitalized Notes to address Pemex's $105 billion debt and operational losses, without a direct government guarantee.
- On Tuesday, Mexico’s Finance Ministry announced issuance of Pre-Capitalized Notes, specifying support without a direct government guarantee.
- Under pressure from creditors, Pemex carried over $105 billion in debt, $20 billion in unpaid bills, and issued over $1 billion in credit-default swaps last year.
- With output stalling, crude production fell to 1.58 million barrels per day, below the 1.8 million bpd target, while Pemex restructured leadership and cut 3,000 jobs.
- Market reaction was positive as Pemex's international dollar bonds rallied, with the 2050 issue rising 2.6 cents to 80.65 cents on the dollar.
- Despite the rescue plan, the operation is noticeably short on specifics, and Pemex's long-term viability depends heavily on political will.
37 Articles
37 Articles
Mexico City, 23 Jul (EFE).- The president of Mexico, Claudia Sheinbaum, explained that the financial operation of $9.5 billion promoted by her government to help the state Mexican Oils (Pemex) will be destined to pay the maturities, amortizations and interest that the company had to pay this year. At its morning press conference, the governor said that the scheme announced on Tuesday by the Ministry of Finance and Public Credit (SHCP) is somethi…
Mexico Pours Billions into Debt-Ridden Pemex, Avoids Direct Bailout but Faces Economic Strain
Mexico’s Finance Ministry this week confirmed a new financial rescue for state oil company Pemex, the world’s most indebted energy firm. The government will issue special “Pre-Capitalized Notes” in hopes of raising $7–$10 billion, officials have stated, to help Pemex meet immediate bills and keep operating through 2025. Pemex’s debt reached $101.1 billion at the […]
The Ministry of Finance and Public Credit (SHCP) will carry out an operation so that Mexican Petroleum (Pemex) has liquidity to meet its short-term obligations, something that, according to experts, is not a new debt, but will seek to solve the financial and operational problems of the public company.
The Ministry of Finance reported that it will carry out a debt issue in the international financial markets to strengthen Pemex's financial position.It explained that the resources will be used to strengthen the company's liquidity position and meet Pemex's short-term obligations.Although the dependence did not specify the amount of the issue, Bloomberg estimates that the government intends to raise between $7 billion and $10 billion.The operati…
Mexican Oils (Pemex), the world’s most indebted oil company, will once again have an oxygen balloon from the Mexican government to relieve its financial stress. The Ministry of Finance will issue bonds, through a trust, to purchase Treasury bonds and the value of those instruments to give to Pemex to pay its debts. The Treasury still does not disclose the final amount of the operation, however, Bloomberg agency estimates that the issue will be i…
Mexico Unveils Financial Maneuver to Stabilize Debt-Laden Pemex
Mexico’s Finance Ministry announced Tuesday it will launch a new financial operation to support the country’s embattled state oil company, Pemex—the most indebted energy firm in the world. The operation involves issuing “Pre-Capitalized Notes,” a form of financing designed to strengthen Pemex’s balance sheet without a direct government guarantee. The plan—part of an ongoing effort to prop up a company mired in debt, production decline, and opera…
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