Heavy Demand for Pemex Peso Retaps

Pemex has raised MXP9.6bn ($732m) through a reopening of its peso-denominated 2024 global depository notes (GDN) and 2019 domestic FRNs, with order books topping MXP16.5bn, according to people familiar with the terms. Looking to add liquidity to the GDN market by tapping both foreign and local buyers interested in Pemex and MXP exposure, Pemex reopened the 7.19% coupon bonds for MXP8.5bn at 95.416 to yield 7.82%, or Mbonos+145bp, at the tight end of 150bp-area guidance. Demand topped MXP10.2bn, with Mexican Afores driving most of demand, with foreigners comprising only 13%. The 2019 floating-rate domestic bonds were reopened for MXP1.1bn at TIIE+13bp, in from TIIE+18bp in the previous retap in June. Demand topped MXP6.3bn, and came from a diverse group of local investors including mutual funds, insurance companies, bank treasuries and other investor types. Proceeds are marked for investment needs. Actinver, Bank of America Merrill Lynch, Banamex, BBVA Bancomer, Banorte-Ixe, HSBC, Morgan Stanley, Santander and Scotiabank managed the transactions. Pemex is rated AAA in the domestic market and Baa1/BBB internationally. The 2019 now totals MXP6.1bn and the 2024 GDN MXP18.9bn. Pemex first sold the 7.19% 2024 GDN in September for MXP10.4bn. It is a busy week in Mexico’s local market, with Fibra Uno planning to raise MXP13bn-MXP18bn ($983m-$1.3bn) as soon as today, and HSBC Mexico on tap for MXP5bn, in what would be the bank’s first domestic deal in four years.