Pemex Lists Local Bond Shelf

Pemex has applied to Mexican regulators for a 5-year MXP70bn program to sell bonds in the domestic market. The state-owned oil producer would issue fixed or floating-rate bonds at maturities of 1-20 years, according to documents filed with the Mexican Bolsa, which do not give any indications of timing or size. Santander has been identified as structuring agent and a bookrunner on a first issuance, with other banks able to be added later. Pemex sub-director of finance and treasury Mauricio Alazraki told LatinFinance last month that the state-owned oil company was considering a local markets issue this year, declining to state at what tenor or price. Mexico’s undersecretary for public credit Gerardo Rodriguez says the finance ministry is working with Pemex and state utility CFE on issuances that would serve to help open the market for corporates, noting that such AAA credits should expect 3-5 years tenor. Pemex has already tapped the dollar debt market this year, raising $2bn in 8% 2019 bonds priced to yield 8.25% in January, on about $6bn in demand. The issuer faces $19.4bn in 2009 investment needs and is set to increase its net indebtedness by $2.5bn-$3.0bn.