Pemex Preps Peso Retaps

Pemex is targeting up to MXP9.6bn ($732m) through a reopening of its 2024 global depository notes (GDN) and 2019 floating-rate domestic bonds today, according to a selling memo. Wednesday’s pricing is tentative and is subject to market conditions, say people familiar the plans, and the Mexican state-owned oil company is expected to sell at least MXP7bn between the GDN and the floater. Proceeds are marked for investment needs. Actinver, Bank of America Merrill Lynch, Banamex, BBVA Bancomer, Banorte-Ixe, HSBC, Morgan Stanley, Santander and Scotiabank are managing. Pemex is rated AAA in the domestic market and Baa1/BBB internationally. Its last retap of its 2017 bonds, for MXP2.5bn, was in March. Pemex first sold the 7.19% 2024 GDN in September for MXP10.4bn, and had previously raised MXP20bn in a 2021 GDN. The sale would headline a busy day in Mexico. Aeromexico is also looking to issue up to MXP1.7bn today in floating-rate notes backed by future flows from credit card payments. Fovissste is scheduled to be the third issuer of the day, looking at paying TIIE+180bp-190bp for a domestic 30-year RMBS sale of up to MXP5.45bn.