Mexico’s Pemex Targets Bank, ECA-Backed Financing in 2019

(US News, New York, 18 December 2018) Mexican energy producer Petróleos Mexicanos (Pemex) will look to banks and export credit agencies (ECAs) to finance part of its deficit next year, as the company enters 2019 under a new government and uncertain conditions in the international capital markets. State-owned Pemex, which is expected to raise approximately $8 billion in external debt next year, is also facing a bearish investor base concerned that Mexico’s new administration will hinder the company’s fiscal situation. Pemex has a $1.5 billion bank-led revolving credit facility maturing in the second half of 2019 and is on course to raise between $1 billion and $1.5 billion in ECA-backed finance next year, according to three sources familiar with the company’s plans. The company has conducted talks with trade agencies such as Export Development Canada and the Netherlands’ Atradius over ECA-backed loans and in November Pemex received a $250 million 10-year facility from BNP Paribas and HSBC that was 80 percent guaranteed by Italy's SACE.