A Never-Ending Bond
Nov 1, 2004
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 right.
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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