Pemex rolls out green bond plans
Debt to finance environmentally and socially responsible investments is taking shape from the Mexican oil company
Pemex is hoping to issue a "green bond" to diversify its
investor base in the coming months, the company’s
treasurer told LatinFinance.
The transaction, which is in the early stages of being
structured, would finance environmentally sustainable and
socially responsible projects, said Rodolfo Campos Villegas.
Already, the company has found interest in Europe.
"There are investors, including some of the big fund
managers, that still don’t have a close
relationship with Pemex, in particular in Europe and
Scandinavia, where these type of assets are more developed,"
Campos told LatinFinance. "So in the next few months
we’ll be doing an effort to get closer to that
community of investors and hear their impressions."
Sales of green bonds globally could double to $20bn this
year, as borrowers target a broader range of investors and as
demand grows for sustainable investments, Standard &
Poor’s said this week. The agency defines green
bonds as having proceeds ring-fenced for projects that address
"Crucially for investors, the credit risk of a corporate
green bond remains on the issuer's balance sheet," the ratings
agency said in a May 20 statement. "This means that, unlike
with multilateral bank issuance, investors do not have to
sacrifice yield to gain green exposure, nor significantly
increase their risk profile in order to invest in assets that
aid environmental efforts."
Pemex is still analyzing the portfolio of projects that
would be included in the deal, Campos said. The bond could be
sold in euros.
"We’re still thinking about the currency, but
it looks like there is more acceptance in the Euro market, it
looks like the investment base there is more developed, but
that’s something we still need to analyze in
detail," he said.
Pemex has already sold large bonds this year in
"With this green bond we would be accessing a different type
of resource from those we tap with a regular issuance, so
that’s our first objective," Campos said. "Our
second objective would be to promote a portfolio of projects
related to social responsibility and sustainability."
further details of Pemex’s green bond plans in
LatinFinance’s Daily Brief.
A new beginning Mexico’s energy
reform opens the way for Pemex to modernize its capital
structure and improve its financial position, writes its chief
executive Emilio Lozoya