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Pemex sells $4bn in bonds in move to lower its short-term debt

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%.

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Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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