Pemex Seizes the Day


Favorable market conditions have lured Petroleos Mexicanos (Pemex) to structure a third deal from its oil export securitization program. The state-owned oil company is expected with the deal in the next week or two, industry sources said.

Like many other issuers, Pemex sees a window of opportunity now, while the market is relatively calm and before a possible interest rate hike in the U.S., which could have negative repercussions for Latin America and the emerging markets.

The company can be expected to issue another sizeable multi-tranche deal, perhaps for $1 billion or more, sources said. And in light of good market conditions, the issuer may also aim for long maturities, a source said. Its last deal in February had maturities ranging from three to 10 years.

Further details were not yet available.

The company's securitizations have been jointly lead managed by Morgan Stanley Dean Witter, Goldman Sachs and J.P. Morgan. In December's deal, Pemex named Morgan Stanley "global coordinator" and in February, Goldman took on that role.

In past deals, Pemex offered two tranches insured by triple-A monolines and two tranches with ratings between single-A and triple-B. The global deals were sold as Rule 144(a) offerings in the U.S. - JB