Pemex Continues Ex-Im Bond Issuance

Pemex has issued $400m in bonds backed by the US Export-Import bank, the second issuance under a $1.2bn program guaranteed by the American ECA. The latest batch of 2022 notes with a 5.71-year average life priced at par with a 1.95% coupon, landing inside Tuesday’s 2.00% yield. Pemex has now issued $800m under the program designed to include multiple issuances totaling up to $1.2bn, and aimed at US investors. 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. Credit Agricole, Goldman Sachs and JPMorgan managed the sale, as they did Tuesday’s. In addition to providing a cheap and diversified source of funding, the deals under the program 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.