Mexico’s Ministry of Finance and Public Credit (SHCP) announced that Petróleos Mexicanos (Pemex) successfully completed an international placement of Pre-Capitalized Structured Notes (P-Caps) totaling $12 billion USD, with maturity in 2030.
The operation represents the second-largest single-tranche issuance of structured bonds globally and is part of the Mexican government’s strategy to strengthen the financial health of the state-owned oil company.
The five-year issue attracted strong demand of $23.4 billion USD from 295 institutional investors worldwide—nearly double the final amount issued. This robust interest allowed for an increase from the initially planned $10 billion USD and improved the bond terms, narrowing the spread over U.S. Treasury bonds from 200 to 170 basis points, with a fixed annual coupon rate of 5.50%.
The SHCP said the operation is in line with the government’s strategy to optimize public sector balance sheets by enabling more efficient management of financial liabilities. It also reflects market confidence in Mexico’s macroeconomic stability and Pemex’s credit quality.
Although the transaction was announced on July 21, the closing was finalized this Tuesday to allow for direct communication with investors, credit rating agencies, and key market stakeholders. According to the Ministry, this outreach was crucial for building trust, improving issuance terms, and attracting a diversified investor base.
The proceeds will be used to cover Pemex’s financial obligations, including amortizations and interest payments due in 2025 and 2026, contributing to the company’s financial recovery.
The bond will be recorded in the Historical Balance of Public Sector Borrowing Requirements, in accordance with the Federal Budget and Fiscal Responsibility Law and the Federal Public Debt.
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