Pemex Beats Local Path

Pemex is meeting investors in Mexico this week and next to pitch a new domestic bond transaction in fixed and floating tranches, according to bankers managing the sale. Pricing will happen as soon as the end of next week. The state-owned oil producer is expected to issue around MXP10bn, though it has filed for up to MXP15bn. It can choose between 5-year MXP-denominated floaters and 10-year fixed-rate notes in MXP or UDIs. Proceeds are marked for debt repayment, investment and general corporate purposes. BBVA, HSBC and Santander are managing the sale, rated AAA on a national scale. As with its pair of MXP10bn issuances in April and May of 2009, Pemex brings a big transaction that could help open up local DCM. This year however, supply scarcity has less to do with risk aversion and more with last year’s dispute between institutional investors and issuers that made it tough for all but the bluest-chip borrowers.