Pemex will go to the capital market to refinance its debt


As part of the refinancing plans of Petróleos Mexicanos (Pemex) are planning to shortly go to the capital market to refinance the world's most indebted oil company, said Alberto Velázquez, director of finance at Pemex.

"We are doing liability management for 2020 and with the remaining 2,000 million we want to go to the capital market, soon to be able to refinance debt," he said at the Oil and Gas Forum.

He reiterated that at the end of June they will present the business plan for which they have been in contact with the rating agencies, so they do not foresee a downgrade in the rating.

Its objective is to maintain a debt of 0 and go well, so they will continue to make good liquidity management, which includes refinancing operations. Three weeks ago, they announced the refinancing of two revolving credit lines and one medium-term loan for an amount of 8,000 million dollars in which the bank participates.

"We are making progress in the management and containment of the problems that have to do with the upcoming maturities of the debt."

They have had the response and support from international banks and expect to finalize the process by the end of June, which means adding more banks to participate. By 2022, the goal is not to resort to debt and from there work to reduce the indebtedness of the oil company.

Gonzalo Monroy, director of the Petroleum Consultancy GMEC, said that this is an error and the operation they will do is a refinancing of the debt as all past administrations have done.

"It's a bad use of the word it's about a debt issue to refinance, there is no increase in debt, they are still the same levels of debt but improving the deadlines, basically kicking the ball."

Going to the capital market means selling shares, which would open the door to privatization, which he does not think will happen.

By Mexicanist Source Agencies

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