PEMEX Bond Issuance Spurs Debate in Mexican Congress

The recent announcement by Mexico’s Ministry of Finance and Public Credit (SHCP) to issue Pre-Capitalized Notes to bolster PEMEX’s financial position has ignited debate within the Mexican Congress. While the ruling MORENA party in the Senate supports the measure as a critical liquidity injection, the PRI Party views the bonds as a symptom of a deeper, structural crisis at the state oil company.

The SHCP stated the operation aims to strengthen PEMEX’s financial position and address its short-term obligations, forming part of an integral financial strategy to improve liquidity, optimize debt maturity profiles, reduce liabilities, and lower financial costs. The ministry clarified that this operation does not constitute a guarantee to PEMEX. Bloomberg reports that Mexico intends to raise between US$7 billion and US$10 billion through this debt sale, with the offering consisting of dollar-denominated debt maturing in August 2030, structured as Pre-Capitalized Amortizing Securities (P-Caps).

MORENA Senator Guadalupe Chavira asserted that the measure is not debt contracting or a financial rescue, and the fresh resources will provide a respite for PEMEX to meet its short-term obligations. She also highlighted positive reactions from financial rating agencies regarding the mechanism, stating it will provide liquidity to a large company currently facing setbacks due to past indebtedness.

Conversely, Rubén Moreira, coordinator for the PRI in the Chamber of Deputies, emphasized that PEMEX faces an accumulated debt of over approximately US$130 billion, in addition to maturities of US$8 billion this year and another US$26 billion in 2026. Moreira warned that this situation jeopardizes not only PEMEX but also national finances.

The SHCP has committed to continuous communication through an exclusive information channel to ensure transparency. The ministry also underlined its commitment to prudent management of public finances to strengthen state-productive enterprises as drivers of national development. The operation complies with Mexico's Federal Public Debt Law, the Federation's Revenue Law, borrowing limits authorized by the Union Congress for the 2025 fiscal year, and the Law of the State Productive Enterprise, Petróleos Mexicanos. MORENA senators, including Chavira, expressed confidence in the energy strategy led by President Claudia Sheinbaum. Chavira also mentioned that this is not the first time PEMEX bonds have been placed in the market, citing a US$4 billion issuance in January 2014.