Pemex Plots Local Jumbo Bond

Pemex is preparing a transaction of up to MXP15bn ($1.22bn) for the domestic bond market. The state-owned oil producer plans a TIIE-based 7-year tranche, a 10-year fixed-rate portion and a 15-year piece denominated in inflation-linked UDIs. Proceeds are marked for investments and repaying existing debt. Banamex, BBVA Bancomer and HSBC are managing the deal, rated AAA on a national scale. Though timing depends on regulatory progress and market conditions, bankers say the deal could come as soon as the first week of September. Pemex placed MXP10bn in 5-year bonds locally earlier this year.