Mexico Debt Ops Draw US$50.6B Demand, Aid Pemex Refinancing

PEMEX and the Ministry of Finance (SHCP) closed a series of debt operations this September that drew extraordinary interest from global investors, with combined demand reaching US$50.6 billion, 3.65 times the amount ultimately placed.

PEMEX announced earlier this month the closing of a bond buyback that drew US$12 billion in participation from investors, of which US$9.9 billion corresponded to maturities scheduled between 2026 and 2029. The program also covered some 2025 amortizations and short-term liabilities.

In parallel, the Finance Ministry placed a basket of euro and dollar denominated bonds totaling US$13.8 billion between Sept. 15 and 16, as part of a broader effort to optimize the public sector’s balance sheet. The government said proceeds would directly reduce PEMEX’s foreign-currency debt and allow the company to stabilize its obligations at levels more compatible with its credit outlook and liquidity.

The euro tranche consisted of €5 billion in three new notes at four, eight and 12 years, with coupons of 3.5%, 4.5% and 5.125%, respectively. The dollar tranche totaled US$8 billion across five-, seven- and 10-year maturities, with coupons ranging from 4.75% to 5.625%.

Investor appetite was strong. The offerings attracted demand equivalent to US$50.6 billion from 573 buyers worldwide, or 3.65 times the amount placed. The oversubscription allowed Mexico to tighten pricing by 30 basis points on the euro bonds and 25 basis points on the dollar bonds compared with initial guidance.

The government said it plans to match the international placement with a capital injection of equivalent size for PEMEX, ensuring smoother amortization schedules over the coming decade. Together with pre-capitalization notes and other funding tools, the transactions complete the NOC’s current refinancing strategy under its 2025–2035 business plan.