Historic Pemex Bonds
Mexico's national oil company, Pemex, issued ?1 billion in
20-year notes that sparked a frenzy among high-grade corporate
bond investors. Oversubscribed nearly four times, the issuance
became the longest-dated euro offering ever by an emerging
market issuer. Pemex sold the bonds at a 160 basis points
spread over. Deutsche Bank and Barclays were lead managers on
the deal. The bond, priced attractively compared with Pemex's
dollar curve, resulted in the tightening of the spread
differential between the sovereign and Pemex in both euros and
dollars. Pemex also sold $1.3 billion in five- and eight-year
bonds. The five-year issue was priced to yield 51 basis points
over US Treasuries and the eight-year tranche priced at 57
basis points over. Pemex plans to raise $8.5 billion this
year to refinance debt and fund new investments. It raised a
record $6.88 billion in the bond markets last year with
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