Pemex Mulls Colombia, Chile Bonds

Mexican state oil producer Pemex is considering an array of currencies for its next bond issuance, including debuts in LatAm local currencies, Mauricio Alazraki, MD of finance and treasury, tells LatinFinance. “We could issue in euros, pounds sterling or dollars,” he says. “Chilean or Colombian pesos are also an option. As these markets are closer it is easier for investors there to understand Pemex than say for example Australian investors,” he adds. Bonds in CLP or COP would mark a debut for the quasi sovereigns in a LatAm local market other than MXP. Pemex did a lot of pre-funding in 2010, so in 2011 it will only have to raise $2bn-$3bn this year. In Q2 or Q3, Pemex will look to do a plain vanilla bond issue for between $1bn and $2bn, according to Alazraki. He adds that it will not be necessary to pre-fund 2012. In 2011 Pemex will look to issue between MXP15bn and MXP20bn in Mexican local markets. Around 17% of Pemex’s debt is bank debt, excluding ECAs, and around $3.3bn of bank debt is maturing in 2011. “In May a syndicated loan for $1.5bn is expiring so we could go to the bank market, it could prove very attractive,” says Alazraki. “However, the tenor with bank debt is not that attractive. We may do a small syndicate, or a club deal or bilateral loans totaling around $1bn,” says the official. He adds that potential banks for bookrunners would be those with a strong local presence, and the loan could be in dollars or Mexican pesos.