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Mexico & Nafta - November 2019

Economic Highlights

Pemex prepays debt: On 23 September Mexico’s state-owned oil firm Pemex announced the success of an operation to pre-pay debt from bonds maturing between January 2020 and September 2023, for a total of US$5.01bn (slightly above the established target of US$5bn). Pemex reduced its debt for bonds maturing in 2020, 2021, 2022, and 2023 by US$734.3m, US$2.78bn, US$711.1m, and US$778.8m respectively. Pemex used an equity capital injection of US$5bn, previously announced by the finance ministry and funded by the federal treasury, to carry out the operation. The early repayment of the debt also came after Pemex on 12 September announced the placement of US$7.5bn worth of bonds in the international market that will be used for debt refinancing. This was the largest transaction of its kind in the company’s history and one of the best received; according to Pemex, the placement was more than five times oversubscribed, with total demand reaching US$38bn. Of the prepayment of debt, Pemex highlighted that the successful operation “strengthens [its] financial position…and reduces the refinancing risk for the next years”.

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