Mexico’s Pemex plans to repay $2bn to suppliers by offering new debt

Mexico’s national oil company Pemax will offer to repay about $ 2 billion it owes to major card providers with new debts, which could ease the terms for some of its largest contractors.

In recent years, Fax has been accumulating debts to its suppliers, which stood at $ 13.5 billion at the end of the first quarter, according to the company. Financial submissions.

The company did not specify which vendors would benefit from the offer, but said it would replace invoices with banknotes with an 8.75 percent coupon that would arrive in 2029 to vendors with more than $ 5 million.

In January, the Shlomberger oil services group said it was experiencing payment delays from its main customer in Mexico and that it owed about $ 500 million. Competitor Liberton also said that about 10% of its debts were from Mexico, where it was also owned Paid delays.

Shlomberger and Liberton did not immediately respond to requests for comment.

FMX It has debts of more than $ 100 billion, making it one of the most indebted oil companies in the world. Although they have recorded large quarterly losses, many emerging market funds are holding on to their bonds because of strong government backing and a higher return on the company compared to Mexico’s sovereignty bonds.

The government of Anders Manuel Lopez Obrador, the national president of Mexico, has vowed to “save” Pemax after years of privatization, which he says is meant to destroy it.

The deal announced on Tuesday covers a total of $ 2 billion in liabilities, making it neutral to Pamax’s credit profile, said Nimia Almeida, an analyst at Moody’s rating agency.

She added that the move was a good move for the company to help protect its supplier base.

“Everyone is using suppliers as a source of funding… But this amount has increased in recent years, in fact it has become difficult for the suppliers themselves to survive,” Almeida said. “I think from this point of view it is positive that the company is doing something about it.”

Lopez Oberdor is a top priority for supporting Pamax financiallyLowering an important tax rate on its profits to 40% in 2022 from over 65% in 2019. The company also recently agreed to repurchase some bonds and replace others in the amount of more than $ 3 billion.

At the same time, the government has pursued a strategy of being “independent” in energy that includes spending billions for Pemex to build a new refinery in the president’s country. The plan is not expected to maximize the state-owned company’s profits, analysts say, and crude oil production has continued to decline.

Mexico’s Pemex plans to repay $2bn to suppliers by offering new debt Source link Mexico’s Pemex plans to repay $2bn to suppliers by offering new debt

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