Mexico’s Pemex reopened two long-term bonds to raise some $5 billion on international markets, using some of the proceeds to repurchase debt expiring over the next two years, the state-run oil company said on Sunday.
In a statement, Pemex said it had registered demand worth close to $15 billion in placing the $5 billion via banks BBVA Bancomer, HSBC, JPMorgan Chase and Santander. Most of the investors came from the United States and Europe, it added.
The bonds reopened fall due in 10 and 30 years, and will pay a return of 5.75 percent and 6.90 percent, respectively, at maturity, added Pemex, which has been battling with heavy debts and now faces increased competition from private firms.
Some of the financing secured was used to repurchase bonds maturing in the next two years worth $1.742 billion, it said.
“This way the company has extended the average lifespan of its dollar-denominated bond portfolio by 1.1 years, significantly reducing its financing requirements,” Pemex said.
(Reuters) Reporting by Dave Graham and Veronica Gomez; Editing by Phil Berlowitz