As a part of its annual authorized financing program for 2017, Petróleos Mexicanos performed an offering for 450 million British Pounds (approximately 600 million Dollars). It is due to expire in 2025 and has an interest rate payable upon maturity of 3.837 per cent, which is in favorable contrast with the last bond issued for 350 million Pounds in this market, at a rate of 8.336 per cent.
This operation is part of the company’s efforts to diversify its investment base by gaining access to sources of financing in a variety of formats and currencies, and by taking advantage of favorable conditions that will allow the company to optimize the profile of its debt portfolio by substituting liabilities.
Pemex reaffirms that it had already covered its financial needs for 2017 and 2018 with the operations carried out in the financial markets, as well as with the banking sources of financing. This operation is included in the goals that were established in the Business Plan for 2017 – 2021, in order to achieve the gradual reduction of indebtment, which is consistent with the goals of the financial balance. It also gives the company a greater financial flexibility and strengthens its position of liquidity.
The demand was distributed among over 113 investors, especially insurance companies, pension funds, and public and private banking institutions, mainly from Europe. The placement agents were Barclays Bank, PLC and HSBC Bank, PLC.
The conditions that were achieved in the issuance of this bond reflect the confidence of international investors in Petróleos Mexicanos as a State-owned productive company, as well as in the financial strategy being applied by its current management.