Pemex Issues First Ex-Im Bonds

Pemex has issued $400m in bonds backed by the US Export-Import bank, the first issuance under a $1.2bn program guaranteed by the American ECA. Upsized to $400m from an anticipated $250m size, the 2022 notes with a 5.71-year average life priced at par with a 2.0% coupon. The bond was sold to US investors, and was heard more than 2x subscribed with asset managers and insurance companies driving the bulk of demand. In addition to providing a cheap and diversified source of funding, the deal represents the first time an issuer has issued a US Ex-Im backed structured bond for purposes outside of aviation funding, according to bankers following the trade. Proceeds of the issue will be used for payments for US imports of goods and services purchased by Pemex and its subsidiary entities from US suppliers for Pemex’s strategic gas program and the payment of 100% of the related Ex-Im bank exposure fee. Credit Agricole, Goldman Sachs and JPMorgan managed the sale. Pemex anticipated 4-7 such US Ex-Im guaranteed issuances under the program in the next few months, for up to $1bn. In the event additional bond funding is not feasible, US Ex-Im could also provide direct loans. The $1.2bn package also includes a $200m credit facility to support purchases from US small businesses.