Pemex strengthened by decree and banking agreement for 8 billion dollars
The President Andrés Manuel López Obrador signed a decree and an agreement with the banking institutions HSBC, J.P. Morgan, and Mizuho Securities, to strengthen the finances of Petróleos Mexicanos (Pemex) for up to eight billion dollars.
The agreement with the three banking institutions, represented by its presidents and general managers, was qualified by the President as historic since it is a refinancing of Pemex's debt for 2 billion 500 million dollars, in addition to the renewal of two revolving lines for 5 billion 500 million dollars. Both from a period of three to five years.
The Federal Chief Executive clarified that with this signature he does not seek greater debt for Pemex, but rather a refinancing with better interest rates.
"We signed an agreement that consists in expanding a revolving fund, a fund that is made available to Pemex, there was already an agreement in that sense but now this fund is extended, it was signed for three years and it is extended to five years, it is extended also regarding the available amount of around 8 billion dollars and also with the good news that the interest rate is reduced".
Nuno Matos de Macedo, CEO of HSBC México; Felipe García-Moreno Rodríguez, president and CEO of J.P. Morgan Mexico; and Gerald A Rizzieri, President & CEO of Mizuho Securities, agreed that there is confidence in the strategy and administration of the Mexican government in Pemex.
López Obrador signed a decree to allow Pemex to migrate wells, that is to say that it has a production of up to 250 thousand barrels per day of oil, along with 150 thousand that are now extracted, so that it will be able to have wells with 400 thousand barrels with another type of regime that excludes the right to share.