Cash-strapped Mexican state-owned oil company Petroleos Mexicanos (Pemex) said on Jan. 31 it had completed a $2 billion bond raising to be used largely to refinance some of its debt.
Pemex did not give details on the bond's tenor or coupon rate, but it said the deal had been five times oversubscribed.
Two company sources told Reuters the bond has a 10-year maturity and was part of a move by the heavily indebted firm to secure financing during the first quarter.
"The funds obtained will be to pay bonds maturing this year," one of the sources told Reuters on condition of anonymity, noting that Pemex had planned the raising to relieve financial pressure during the first quarter.
Pemex had financial debts of some $105 billion at the end of the third quarter, when it posted losses of nearly $2.6 billion.
The company's debt payments due for the first quarter of 2023 stand between $5.5 billion and $6 billion, the firm's CEO Octavio Romero said this month.
The debt payments the company was due to make in January were being met with its own funds, the source said.
President Andres Manuel Lopez Obrador said last week the company will have "complete support" from the government and that it had a plan to ensure pending bond payments are met.
The left-leaning Lopez Obrador has made turning around Pemex's fortunes a priority of his administration.
He has pumped in billions of dollars to support the company and to boost domestic production of motor fuels by refining more of Pemex's crude oil production at home.
Crude output has fallen by around half since peaking in 2004 at 3.4 MMbbl/d. Crude production has risen for the last three years but is still below the 2018 average.
Recommended Reading
A&D Minute: Permian Deals Take Center Stage [WATCH]
2023-04-19 - Also in this week's A&D Minute, Canadian Pacific and Kansas City Southern merge in a $31 billion deal to create a rail network stretching from the Canadian oil sands all the way to Mexico.
A&D Minute: Ovintiv Captures Much-needed Inventory with $4.2B Permian Deal [WATCH]
2023-04-05 - Also in this week's A&D Minute, Crescent Point Energy is acquiring Spartan Delta's Montney assets for $1.28 billion.
A&D Minute: Energy Companies’ M&A Deals in Permian Basin
2023-04-26 - Also in this week's A&D Minute, FireBird Energy II nabbed over $500 million and Wing Resources secured $100 million to pursue deals in the Permian Basin.
A&D Minute: High-dollar Deals in South Texas [WATCH]
2023-05-10 - In this week's A&D Minute, Callon Petroleum unveils plans to exit the Eagle Ford Shale, Crescent Energy looks to expand its Eagle Ford inventory and Diamondback Energy completes divestitures of assets both upstream and midstream.
A&D Minute: Expansions, Investments and Acquisitions Aplenty [WATCH]
2023-05-03 - In this week's A&D Minute, Suncor expands in the Canadian oil sands with a $4 billion TotalEnergies deal, U.S. Energy invests $225 million in the Midland Basin and Elk Range closes on its third Eagle Ford acquisition.