Bond buyback aims to restructure near-term liabilities
Mexico’s government will inject nearly $14 billion into state oil firm Pemex, one of the world’s most indebted energy companies, according to a statement from the finance ministry on Wednesday. The move follows two successful international bond placements — one in dollars and another in euros — which drew high demand and enabled the government to repurchase $9.9 billion in Pemex bonds.
The repurchase program, which closed earlier than planned due to oversubscription, is intended to “smooth out” the company’s debt maturity schedule, especially for payments due in 2026 and 2027. Pemex currently holds around $100 billion in financial debt, along with an estimated $22 billion owed to suppliers and contractors.
Debt plan targets stability and reduced financing costs
The finance ministry emphasized that the transaction will help Pemex reduce its foreign currency liabilities, stabilize its overall debt load, and strengthen both its credit profile and liquidity. The government hopes this restructuring will also lead to lower long-term borrowing costs for the state-owned firm.
In August, Mexico unveiled a broader strategy aimed at ending government support for Pemex by 2027. The current bond buyback and capital injection are seen as key early steps in this transition, ensuring the company can meet obligations while gradually moving toward financial self-sufficiency.
