Pemex to increase bond sales in 2015

MEXICO CITY, November 20, 2014 – In an attempt to maintain current production levels, Pemex has taken on more debt than has ever been carried by the national oil company, closing out September with debt levels reported at $74 billion. According to a statement released last week, Pemex will increase the amount it plans to borrow in 2015 by $15 billion, a strategy it hopes will help combat falling oil prices.

The company also stated that it plans to sell as much as $15 billion in bonds next year, the most it has sold since 1999. “These investments should lead to greater production in future years, but if we don’t see oil prices turn around, you could see more of a negative impact on these bonds,” Carlos Legaspy, a money manager at InSight Securities, which holds Pemex debt, told Bloomberg News.

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