Mexico City, Mexico — Mexico’s state oil company Pemex, is set to receive a capital injection of $3.5 billion. The Mexican state oil company Pemex announced on Monday, a repurchase and liability management operation seeking to reduce the risk of refinancing and the amount of its debt.
The company also said it will receive a capital injection from the central government of up to 3.5 billion dollars.
The firm, one of the world’s most indebted oil companies, explained in a statement to the United States Securities and Exchange Commission that it will provide holders of dollar bonds the option to exchange papers with maturities between 2024 and 2030 for a combination of a new 10-year bond and cash and offered to buy back bonds maturing between 2044 and 2060.
“With this operation, the SHCP (Ministry of Finance and Public Credit) and Pemex will be able to reduce the amount of Pemex’s foreign market debt,” said the agency.
“Improve the maturity profile of the company by extending its short and medium-term amortizations; and to buy back certain bonds of the company below par, in order to reduce the financial cost of the company for the following years,” they added.
The Mexican government also announced a series of measures that it expects to implement in the coming months with the aim of improving Pemex’s financial position.
These include the reformulation of the current 2021-2025 Business Plan of the firm to include actions necessary to strengthen it in the medium and long term, as well as to prepare Pemex for the challenges that the energy sector will face in the coming years.
In addition, they will seek joint investment from the public sector in exploration and extraction projects to “ensure the availability of a robust production platform and improvements in Pemex’s debt structure.”
The oil company reported a net loss of $ 3.74 billion in the third quarter of 2021.