Pemex Closes in on EUR Deal

Pemex has ended its European roadshow, with investor feedback suggesting interest for a new 7-year or 8-year euro-denominated bond, according to a banker familiar with the issuer’s plans. Pricing is expected as soon as today, market conditions permitting. The Mexican state-owned oil producer’s EUR-denominated 2017 bonds, seen trading around MS+133bp Wedensday, and EUR-denominated 2025 bonds, at around MS+200bp, offer pricing reference points. BBVA, Credit Suisse and HSBC are managing the transaction. Pemex last issued in the currency in 2009, pricing a $1.46bn-equivalent 5.50% 2017 bond at a 5.623% yield, or MS+250bp. When laying out international issuance plans for 2013, company officials had said they would monitor the euro market as well as some South American currencies – Peru and Colombia the most likely – for potential issuance in addition to USD. Pemex also plans to become a more regular Mexican domestic market issuer. Its last visits to the international bond market were US Export-Import bank-backed deals in September and October, raising $350m and $750m.