Pemex’s $1.75bn perpetual non-call five-year fixed rate note
Citigroup, HSBC and Merrill Lynch were joint lead managers and bookrunners
In the largest-ever Latin American corporate bond issue, Pemex (Petroleos Mexicanos) issued a $1.75bn perpetual bond at par with a coupon of 7.75%, representing pricing at the lower end of the range.
The structure was chosen to appeal to the retail market, specifically targeting retail and private banking clients in Asia and Europe. In total, 251 accounts came into the deal, with roughly three-quarters of the deal placed with retail and private banking accounts. The placement distribution was 65% in Asia and 30% in Europe.
The judges noted the pioneering nature of the deal, emphatically opening up both the Asian and retail market to Latin American credits. The success of the deal was demonstrated by the record $4.9bn order book, almost five times oversubscribed.
