Pemex will refinance debts owed to suppliers via the issuance of new 8.75% bonds due 2029. Pemex owed MXN 370.7bn ($18.8bn) in 2021 and MXN 72.6bn ($3.7bn) in Q1 2022 to its suppliers. Bloomberg reports that the refinancing “will cover $2bn of debt to Pemex providers”. Pemex’s balance sheet debt stands at over $108bn, and is said to be the highest of any major oil company. Bloomberg adds that in recent years, Pemex has struggled to pay its suppliers and service providers mainly due to the policies by Mexican president AMLO. The company has $2.5bn in principal payments and $2.5bn in coupon payments due in the rest of 2022.

Pemex’s dollar bonds were trading weaker with its 6.84% 2030s down 1.1 points to 90.4, yielding 8.58%.

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