Investors See Pemex Pricing as Reasonable

Investors say they expect Pemex to price MXP10bn in 5-year bonds at 15bp over TIIE on Thursday. Investors say the pricing is reasonable, as they would expect government agencies to price flat to TIIE. “We believe that 15bp over TIIE is reasonable for Pemex, as it is a government-owned company and the government bonds in the 5-year part of the curve pay flat to TIIE,” says one Mexico City-based investor. Ixe, Banamex and Actinver are joint leads on the deal, which is rated AAA on a national scale. Proceeds will be used to pay down outstanding debt and for investment purposes. The state-owned oil company last came to the domestic market June, when it priced MXP5bn in a reopened 9.1% of 2020 bond to yield Mbonos plus 113bp.