The bonds of Petróleos Mexicanos (Pemex) maturing in 2031 seem to celebrate the announcement of the new capital injection for 3.5 billion dollars, released on Monday by the Ministry of Finance and Public Credit.
Since the announcement, the debt securities of the State productive company, due in 2031, have risen 1.02% or close to one dollar on the Luxembourg Stock Exchange, reaching a price of 96.47 dollars.
With the new capital injection, Pemex plans to buy back debt and with the new bond issue for 1,000 million pesos it seeks to improve its financing profile.
The company returned to the international bond market on Tuesday with an issue for which it received $ 1 billion, with a 10-year maturity and an interest of 6.7%, receiving an over-demand of $ 5 billion, according to Refinitiv data.
Pemex is the most indebted oil company in the world, burdened with a financial debt of 113,000 million dollars and faces consecutive annual maturities until 2031.
Next year, according to information from the Mexican oil company, it must amortize $ 6.1 billion and by 2023 another $ 7.3 billion. In 2024, its maturities total $ 9.1 billion.
Help to
According to the rating agency Moody’s, the support that Pemex is receiving will help it reduce its debt by about $ 20 billion between 2021 and 2023.
“The government’s support will allow Pemex to reduce its debt in 2021 and 2023 by around 20,000 million dollars, which is equivalent to the long-term debt that matures in the period,” Moody’s said in the statement.
The rating agency considered that the bond buyback and capital injection are “positive from a credit point of view” because they reduce the risk of debt and refinancing.
Pemex even reported on Monday that it will give its holders of dollar bonds the option to exchange those that mature between 2024 and 2030 for new 10-year bonds and cash. While it will seek to buy back those due in 2044 and 2060.
Regarding the issue, Moody’s considered that the notes benefit from the guarantee provided by Pemex Exploración y Producción, Pemex Transformación Industrial, and Pemex Logística, which guarantee all their outstanding notes.
“We expect Pemex to use the net resources for the recently announced debt refinancing plan that includes exchange and repurchase offers for several outstanding senior unsecured notes (…) We do not expect the new issuance to increase Pemex’s net debt. ”, He indicated.
Reference-www.eleconomista.com.mx