Pemex completes US$1.4bn bond issue

Mexico's state oil company Pemex successfully issued US$1.4bn in seven-year bonds this week on the Luxembourg stock exchange at semi-annual interest rates of 4.5%, a company finance source told BNamericas. Pemex will issue a formal statement on the bond sales next month, when bond settlement is due to occur, the source said. The bonds, valued at US$1,000 each, can be exchanged for up to 58.7 million shares of Repsol YPF stock, which represents Pemex's 4.81% share in the Spanish oil company. Pemex will maintain its voting rights in Repsol YPF during the life of the bonds. Luxembourg's RepCon Lux, an orphan company largely owned by a Dutch charitable trust, is acting as the bond issuer, with Pemex serving as guarantor. The Mexican company aims to finance investment programs such as Pidiregas with resources from the issue.