PULSE NEWS MEXICO
Mexico’s state-run Petróleos Mexicanos (Pemex) — considered to be the most-indebted state oil venture in the world with an outstanding debt of over $105 billion, of which $16.7 billion must be paid back by the end of 2024 — met with representatives of both Goldman Sachs and JP Morgan Chase & Co. earlier this month to ask for additional financing of at least $1 billion.
According to inside sources who spoke to the daily newspaper El Financiero, Pemex is currently in talks with Goldman Sachs for secured financing for its crude oil, and with JPMorgan for financing linked to its gasoline sales in Mexico.
The deals each seek to raise at least $1 billion this year, but the amount could be significantly higher, said the sources, who asked for anonymity since they are not authorized to discuss the private negotiations.
Representatives for Pemex and Mexico’s Finance and Public Credit Secretariat (SHCP) did not respond to requests for comment on the matter, and both Goldman Sachs and JPMorgan also declined to comment.
Pemex’s urgent need for cash fluidity was highlighted earlier this year when it issued a a 10-year bond sale, even though it had one of the highest yields on any security sold this year.
According to Moody’s Investors Service, Pemex must pay back at least $8 billion to lenders within the next 10 months.
Pemex has been asking international banks since last year for innovative solutions to help manage its huge debt.
Bloomberg previously reported that Pemex has been in talks with Goldman Sachs and HSBC for financing related to reducing greenhouse gas emissions.
Mexican President Andrés Manuel López Obrador (AMLO) earlier this year said that the country’s Finance Secretariat will help bail out Pemex in the case that it cannot pay its debt. The government has already provided about $45 billion in tax breaks, capitalizations and other financing since 2019.
“We have been supporting Pemex, and we will continue to do so. This is the rescue of the most important public company in our country,” López Obrador said in January.
“All debt maturities are being paid on time and always with the support of the Finance Secretariat. We will not leave Pemex without support.”