Citi, Deutsche Issue Financing to Help Pemex Cover Unpaid Bills
- SLB issued $1.11 billion in credit default swaps as a hedge
- Pemex owed service providers nearly $6.7 billion as of July 31
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Citigroup Inc. and Deutsche Bank AG have provided financing to Pemex to help Mexico’s state oil company pay outstanding bills to oilfield services giant SLB, according to people familiar with the matter.
In return, SLB has effectively guaranteed against a Pemex default on the loan by issuing more than $1 billion of credit-default swaps to the two banks, said the people who asked not to be named discussing non-public information.