Embattled Pemex Gets $8 Billion Loan to Ward Off Junk Status
- Government plans to use $2.5 billion to refinance current debt
- Company’s bonds rally, defying slump in emerging-market notes
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Mexico moved to bolster investor confidence in its embattled state oil company, announcing an unprecedented $8 billion syndicated loan along with new tax breaks for the energy producer.
Petroleos Mexicanos officials signed the financing agreement with JPMorgan Chase & Co., HSBC Holdings Plc and Mizuho Financial Group Inc. alongside President Andres Manuel Lopez Obrador at a morning news conference. The company will use $2.5 billion of the funds to refinance existing debt, while the remaining $5.5 billion will replace some credit lines.