Pemex Defines Local Issue Size

Pemex plans to sell $2bn-$3bn equivalent of bonds in the Mexican market, according to CFO Esteban Levin. The state-owned oil producer has recently requested approval for a MXP70bn 5-year shelf for local bonds. Total borrowing in 2009 should be $7.5bn-$10.5bn equivalent, Levin says. This would include including $1.5bn-$2.0bn from export credit agencies, $2.0bn-$2.5bn from bank loans, and possibly another $1bn in dollar bonds to follow $2bn placed in January. The net debt load should increase $2.5bn-$3.0bn this year. Pemex has not given any indication of the timing of a first local issuance, to be 1-20 years in tenor. It will be led by Santander and other banks will be named later.