Pemex to Pump More Local Bonds

Pemex is preparing to sell up to MXP20bn in bonds on Mexico’s domestic market. The state-owned oil company has the option to spread the amount between a new 4-year bond paying a spread over TIIE and reopening 2 series from a previous deal – a 9.1% of 2020 fixed-rate issue and a 4.2% of 2020 UDI-denominated deal. The sale is expected the week of May 17, according to bankers on it. Proceeds are marked for the refinancing of debt and capex. BBVA Bancomer, Banamex and HSBC are managing the sale, rated AAA on a national scale. In March, Pemex sold MXP5bn in the fixed-rate tranche and MXP2bn in the UDI notes. The MXP15bn deal also included MXP8bn in 5-year bonds paying TIIE plus 70bp. Demand for the 3-part offer reached MXP36bn.