Pemex Back with Smaller Domestic Jumbo

Pemex has reemerged with plans for a domestic bond issue, and is set to sell up to MXP10bn ($739m) with pricing expected today, say bankers managing the deal. The Mexican state-owned petroleum company is giving the domestic market another try after postponing the multi-tranche deal earlier this month, that was to be up to MXP15bn. Today, Pemex is set to choose among 7-year floating-rate and 15-year UDI denominated bonds. “Because of market conditions Pemex has decided not to issue fixed-rate bonds,” according to a banker on the deal. Proceeds from the issue, rated AAA on a national scale, are to be used for investment purposes and to address existing debt. HSBC and Santander are managing the deal, which originally had four banks on it. Pemex last came to the local market when it issued MXP 10bn in 5-year bonds earlier this year.