Mexico Pulls in $12 Billion to Prop Up Indebted Oil Producer Pemex

(Reuters) – Mexico placed $12 billion in a debt offering to support indebted state oil producer Petroleos Mexicanos (Pemex), the nation’s finance ministry said on Tuesday.

The offering came in the form of pre-capitalized securities, or P-Caps, the ministry said in a statement. The funds will go toward covering financial obligations and debt payments due in 2025 and 2026, it added.

Total demand for the dollar-denominated securities reached $23.4 billion, allowing Mexico to place more than the $10 billion originally planned, the ministry said.

President Claudia Sheinbaum’s administration has sought to shore up Pemex’s finances, as the oil firm – the world’s most indebted energy company – owes billions to suppliers and creditors.

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At the end of the second quarter, Pemex held a financial debt of $98.8 billion and owed providers $22.79 billion.

Sheinbaum has pledged to boost production to 1.8 million barrels per day, but firm executives acknowledged on Monday Pemex will need so-called mixed contracts with private companies and continued government support to reach that target.

Reporting by Kylie Madry; Editing by Natalia Siniawski