Mexico’s state oil firm Pemex has sold $4bn in long-term bonds in order to buy back some existing debt as it tries to strengthen its financial position, according to Bloomberg.
Pemex, a major player in offshore oil production in the Gulf of Mexico, has huge debts of $180bn and is losing its monopoly position in the domestic oil market at the same time that oil prices have been plunging.
The company repurchased $1.35bn in bonds that were to mature in 2018 and 2019, extending the maturities to 2023 and 2047. And it exchanged $1.68bn of 2018 and 2044 bonds so it could push their maturity dates to 2047.
These moves added $2.5bn to Pemex’s total debt but will mean short-term benefits as its debt payments in 2018 and 2019 will fall by 30%.