Pemex Rings MXP DCM Revival

Starved of sizeable domestic corporate issuance for months, Mexican investors today are set to get a chance to fill up on an expected MXP10bn-MXP15bn in new Pemex bonds. The state-owned oil producer can choose at the time of the sale 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 offers a hefty transaction that could help open up local DCM, as last year’s dispute between institutional investors and issuers over bond covenants and sale protocol has made it tough for all but the county’s bluest-chip corporate borrowers. It would be the first corporate offering in Mexico since Holcim Apasco priced a 2013 MXP950m trade receivables securitization in December, according to LatinFinance data.