A Never-Ending Bond
Mexican oil producer Pemex gets $1.75 billion with a groundbreaking perpetual bond that draws mainly Asian investors.
With petroleum prices above $50 a barrel, it seemed only
natural for Mexico's national oil company to return to the
global bond market for the ninth time this year with a unique
offering. Pemex mandated bookrunners Merrill Lynch, HSBC and
Citigroup to place a perpetual bond, the first ever by an
emerging market issuer. The bond was a blowout, with the deal
attracting $4.9 billion in offers. This allowed the leads to
raise $1.75 billion, mainly from Asian retail investors.
Investors were hungry for yield and anxious for an
opportunity to diversify their portfolios. Pemex, a giant oil
company controlled by an investment grade country, looked just
Pemex is one of Latin America's most frequent and most
sophisticated issuers, pioneering products such as its 2003
convertible bond. The company has issued $20.9 billion
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