Petróleos Mexicanos’ $4.482 Billion Notes Offering


Cleary Gottlieb Steen & Hamilton, Ritch, Mueller, Heather y Nicolau and Shearman & Sterling have advised on the transaction

As part of the 2017 Financing Program and a strategy focused on diversifying its funding sources, Pemex issued EUR 4,250 million in the international capital markets through three benchmark bonds at 4.5, 7 and 11 years:

i) EUR 1,750 million of its 2.50% Notes due in August 2021, bearing interest rate at 2.51%;

ii) EUR 1,250 million of its 3.75% Notes due in February 2024, bearing interest rate at 3.84%; and

iii) EUR 1,250 million of its 4.875% Notes due in February 2028, bearing interest rate at 4.98%.

The transaction was approximately 4.2 times oversubscribed, with a total demand of nearly EUR 18 billion. Among the major investors in this issuance were pension funds, portfolio managers and financial institutions in Europe, Asia and Middle East, among others. BNP Paribas, Crédit Agricole, Deutsche Bank and HSBC acted as underwriters of the transaction.

The sources from this transaction will be used to finance strategic investment projects and refinancing.

Cleary Gottlieb Steen & Hamilton has advised Petróleos Mexicanos with Jorge Juantorena (Picture), Erika Nijenhuis, Grant Binder, Alejandro Canelas Fernández, Jessica Rofé, David Stuckey and Jessica Batlle.

Ritch, Mueller, Heather y Nicolau has advised BNP Paribas, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, London Branch and HSBC Bank plc with Carlos Obregón and Cristian Gastelum.

Shearman & Sterling LLP has advised BNP Paribas, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, London Branch and HSBC Bank plc with Stuart Fleischmann, Thomas Donegan, Grissel Mercado, Jeffrey Tate, Erica Kassman, Francisco Cebada, Rita Ghanem, Oliver Linch, Wilf Odgers and Adam Sternberg.

Involved fees earner: Carlos Obregón Rojo – Ritch, Mueller, Heather y Nicolau, SC; Stuart Fleischmann – Shearman & Sterling; Grissel Mercado – Shearman & Sterling; Erica Kassman – Shearman & Sterling; Francisco Cebada – Shearman & Sterling; Rita Ghanem – Shearman & Sterling; Jeffrey Tate – Shearman & Sterling; Adam Sternberg – Shearman & Sterling; Thomas Donegan – Shearman & Sterling; Oliver Linch – Shearman & Sterling; Wilf Odgers – Shearman & Sterling; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Grant M. Binder – Cleary Gottlieb Steen & Hamilton; Alejandro Canelas Fernandez – Cleary Gottlieb Steen & Hamilton; Erika Nijenhuis – Cleary Gottlieb Steen & Hamilton; David Stuckey – Cleary Gottlieb Steen & Hamilton;

Law Firms: Ritch, Mueller, Heather y Nicolau, SC; Shearman & Sterling; Cleary Gottlieb Steen & Hamilton;

Clients: BNP Paribas; Crédit Agricole Corporate and Investment Bank; Deutsche Bank AG London Branch; Hsbc Bank plc; Pemex – Petróleos Mexicanos;

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Author: Ambrogio Visconti