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Pemex Debt Sale Falls Short on Weak Demand, Adding to Debt Woes

  • Company raised $1.5 billion against the planned $2 billion
  • Bonds were sold to yield 9.25%, above the 8.75% coupon
The Petroleos Mexicanos Dos Bocas Refinery in Paraiso, Tabasco state, Mexico.

The Petroleos Mexicanos Dos Bocas Refinery in Paraiso, Tabasco state, Mexico.

Photographer: Cesar Rodriguez/Bloomberg
Updated on

Petroleos Mexicanos raised less money than expected to refinance some of its outstanding debt to suppliers this week, even after it offered buyers a discount, according to people familiar with the matter. 

The company, known as Pemex, sold $1.5 billion in bonds due 2029, said the people, compared with the $2 billion it had planned to raise according to a press release on Tuesday. The debt was sold at a discount of about 97.6 cents on the dollar to yield 9.25%, above the 8.75% coupon.