PEMEX's perpetual bonds are set to be listed on the International Quotations System (SIC) of the Mexican Stock Exchange (BMV), enabling Mexicans to invest in this new debt instrument. This concerns PEMEX’s bonds traded on the Luxembourg Stock Exchange, according to the listing request submitted by Scotia Inverlat Casa de Bolsa.
The perpetual debt securities of the Mexican state-owned oil company were issued on Sep. 28, 2010, for US$1 billion, with the code US71656MAF68, carrying an annual coupon of 6.625%. Interest payments are made quarterly and, since the bond is perpetual, it does not have a predefined maturity date.
A request has been made for the NOC's securities to start trading on Jan. 18, 2024, in the debt section of the SIC. "It is requested to approve the listing on the International Quotations System of the BMV of the following securities: US$1 billion 6.625% Perpetual Bonds (PMXP), which are listed on the Luxembourg Stock Exchange and which are registered, authorized or regulated for public sale by the Commission de Surveillance du Secteur Financier (CSSF)," reads the document.
When the state-owned company issued these perpetual bonds, it announced that the proceeds would be used to finance its investment program and that of their subsidiaries, as well as to refinance its debt.
The NOC is one of the most indebted in the world. Its financial liabilities amounted to US$105.4 billion at the end of June, according to its report for the second quarter of 2023.
Once registered, these securities can be traded on the International Quotations System. Through the so-called global market, Mexican investors can buy shares of foreign companies, ETFs and debt securities listed on international markets in Mexico. This platform allows for investment diversification.