Pemex reduces its debt by $5.17 billion

Pemex is the most indebted oil company in the world

Pemex reduces its debt by $5.17 billion
López Obrador has vowed to rescue the oil-company - Photo: Daniel Becerril/EL UNIVERSAL
English 24/09/2019 14:41 Reuters Mexico City Daina Beth Solomon Actualizada 14:50
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Pemex said it had lowered its debt by about USD $5 billion, and that would help strengthen its financial position.

Citigroup Global Markets, Goldman Sachs, HSBC Securities (USA), J.P. Morgan Securities, BofA Securities, Credit Agricole Securities (USA) and Mizuho Securities USA were dealer managers on the transactions.

Pemex is saddled with over USD $104 billion of financial debt and its bonds are under threat from Moody’s of losing their investment-grade rating. They have already been downgraded to “junk” by Fitch.

The company is also struggling to reverse years of declining oil output and fix entrenched mismanagement and corruption.

Furthermore, Pemex said it had paid USD $5.17 billion in a tender offer to prepay about a third of its bonds maturing between 2020-23, part of President López Obrador’s latest effort to shore up the state oil firm.

The company announced the bond tender earlier this month, using a USD $5 billion capital injection from the Mexican government.

In addition, Pemex said it had paid a total of USD $34.066 million in accrued and unpaid interest on the bonds.


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