ESG & Investing

Goldman, HSBC in Talks With Pemex on $1 Billion ESG Financing

  • Indebted Mexican driller is under pressure to reduce emissions
  • Government has stopped paying company’s debt service this year

A worker holds tips received at a Petroleos Mexicanos gas station in Ciudad Juarez, Mexico.

Photographer: Paul Ratje/Bloomberg
Lock
This article is for subscribers only.

Petroleos Mexicanos is seeking financing from HSBC and Goldman Sachs Group Inc. in a deal that will tie funds to reducing greenhouse gas emissions.

The banks have reached a preliminary agreement to provide financing to Pemex linked to carbon emissions reduction goals as the Mexican state producer struggles under a liquidity crunch and faces increasing pressure from investors to improve its environmental track record, according to people with knowledge of the situation. The banks will provide about $1 billion, one of the people said.