Mexican state-owned petroleum company Pemex has reportedly sold $2bn of its bonds.
The sale of the ten-year Pemex bonds is said to have generated about 6.5% in a move, which is aimed at funding the company’s investment, as well as refinance debt.
A Pemex spokesperson said in a statement: “With this deal, our cash level for the end of 2018 has been strengthened and we guarantee the company’s liquidity for the start of 2019.”
Starting on 1 December, President-elect Andrés Manuel López Obrador will manage the company. Octavio Romero will serve as the head of the company.
HSBC, JPMorgan Chase, Scotiabank, and UBS handled the issue, which was oversubscribed 5.9 times, and involved the participation of investors from the US, Europe, the Middle East, Asia, and Mexico.
According to the Financial Times, an undisclosed Pemex investor said that the sale of Pemex bonds is required to pre-fund needs for next year.
The investor did not reveal details on whether tenders of oil assets will continue or not.
Pemex, which is struggling with a production fall for 14 years, announced discoveries of seven reservoirs in two new wells in Mexico’s Southeast Basin, last week.
With the new wells Manik-101A and Mulach-1, the company will be able to incorporate more than 180 million barrels of oil equivalent of 3P reserves.
Pemex said that the new shallow water discoveries will become part of its portfolio of fields that are under development and have been discovered in recent years.
The company is currently evaluating and developing six fields, which are expected to have combined peak production of up to 210,000 barrels of oil per day and 350 million cubic feet per day of natural gas.