Pemex’s Bonds Rise

Bonds of Petroleos Mexicanos, Mexico’s state oil monopoly, rose after Congress approved legislation cutting the company’s taxes. The reduction takes effect January 1 and may reduce Pemex’s tax burden by as much as $2.3 billion in 2006, according to Finance Ministry estimates. Pemex paid about $42 billion in taxes last year, or 61 percent of revenue. The yield on Pemex’s dollar-denominated bond due in 2035 fell to 6.81 percent, the lowest level since June 8 while its price rose .75 cents on the dollar to 97.65. Pemex will add about $2.5 billion in new debt this year to keep up with its $12 billion investment plan.