Banobras Arranges MX$250B Fund to Support PEMEX Supplier Debt

The government has announced the creation of a MX$250 billion (US$13.430 billion) investment fund aimed at financing PEMEX’s 2025 investment projects and ensuring timely payments to its contractors. The financial vehicle was developed by the National Bank of Public Works and Services (Banobras) in coordination with Mexico’s Ministry of Finance and Public Credit (SHCP).

The fund will serve as a dedicated mechanism to support PEMEX’s operational liquidity in 2025, facilitating efficient and transparent payments to suppliers and service providers involved in capital projects. It will be backed by a federal government guarantee, allowing the instrument to offer favorable financing terms and reduce the cost of capital.

The vehicle will be financed through a mix of sources, including development banks, Banobras, Nacional Financiera (NAFIN), and Bancomext, as well as commercial banks and institutional investors. The guarantee from the federal government is currently being processed by SHCP. Banobras will use its balance sheet to fund at least half of the total amount, with the remaining portion expected to come from private banking and structured investment schemes.

“This is a strategic move to ensure that PEMEX’s projects with high returns are fully funded without compromising sovereign debt,” said Jorge Mendoza, Director General, Banobras. “We are analyzing each project individually to ensure the vehicle recovers its resources through the profitability of each initiative.”

Mendoza also announced the creation of a new single-window mechanism as part of the fund's operations. Companies with active contracts with PEMEX will first establish an agreement with the company and then be referred to a second window operated by Banobras. There, Banobras will validate deliverables and invoices, issue payments directly to suppliers, and notify PEMEX of the disbursement. PEMEX will then reimburse the fund based on a predetermined calendar. This structure is designed to ensure timely and transparent transactions, reduce administrative bottlenecks, and safeguard supplier cash flow.

“This is the first time an instrument of this nature is being implemented exclusively for the state oil company,” Mendoza added.

This strategy forms part of a broader financial and fiscal restructuring plan for PEMEX. President Sheinbaum stated in a press conference that the goal is for PEMEX to stop requiring direct support from the Ministry of Finance by 2027. “For 2027, PEMEX will not need support from the Treasury, because in 2025 and 2026 it has to cover significant debt amortizations and interest payments. But thanks to all the work done by the Ministry of Finance, PEMEX will no longer require support in 2027,” she said.

Banobras, Mexico’s fourth-largest financial institution by loan portfolio, plays a central role in financing infrastructure and public works projects. Between December 2018 and December 2024, Banobras recorded over MX$800 billion in credit placements and average annual profits of more than MX$10 billion.

The fund is expected to enhance PEMEX’s investment execution capabilities, mitigate supplier payment delays, and improve transparency in project financing during the company’s 2025 operational cycle.

Government Doubles Efforts to Support PEMEX

President Sheinbaum’s administration presented a 10-year strategic plan to overhaul PEMEX, aiming to stabilize operations, reduce debt, and relaunch petrochemical and gas production. Key components include a reduced tax burden, a more sustainable financing model, and capital support through a new MX$250 billion investment fund led by BANOBRAS. The Ministry of Finance will continue supporting the company through 2026, after which PEMEX is expected to become financially self-sufficient.

Operationally, PEMEX plans to stabilize oil output at 1.8MMb/d, prioritize refining for domestic consumption, and boost gas production from 3.5Bcf/d to over 5Bcf/d. Investment will also target refining, petrochemicals, and infrastructure like pipelines and cogeneration plants.

This strategy, paired with a successful international bond issuance, recently led Fitch Ratings to upgrade PEMEX’s credit rating from B+ to BB, citing stronger government linkage. However, Fitch also flagged persistent operational, environmental, and financial risks, stating that PEMEX’s long-term viability remains highly dependent on continued federal backing.

Nonetheless the NOC still struggles to meet its current production targets. In 1H25, the company averaged 1.622MMb/d in liquid hydrocarbons, below the federal government’s 1.8MMb/d goal. Production in 2024 averaged 1.759MMb/d, but steadily declined from 1.829MMb/d in January to 1.618MMb/d in December. In 1H25, production has stabilized just above 1.6MMb/d. Comparing January 2024 to June 2025, PEMEX production has fallen by 200Mb/d, an 11% decrease over 18 months.