:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/elfinanciero/T5MKZL4SDNEPDF54U7WOP6OZQ4.jpg "Pemex Renegotiates Jumbo Deal Credit Lines Worth .5 Billion to Navigate Political Uncertainty")
Petróleos Mexicanos (Pemex) renegotiates a combo of credit lines denominated Jumbo Dealby 9.5 billion dollarsto mitigate the political scenario due to the upcoming elections in the United States and Mexico, while ensuring payments to suppliers and financial debt in 2023 and 2024 to ensure a “hassle-free” management change.
“Pemex is in the process of negotiating a combo of credit lines that we have called Jumbo Deal“, reported Carlos Cortez, Chief Financial Officer of Pemex.
The manager pointed out that the Jumbo Deal It is made up of a term loan of 2.5 billion dollars and a revolving line under Pemex for 5.5 billion dollars, which matures in June 2024.
In addition, it includes a second revolving line for the PMI Comercio Internacional subsidiary of Pemex for 1,500 million dollars. valid until next December 2023.
“For many reasons we decided to advance the efforts to renew this combo, mainly taking into account the potential conditions of volatility that could be brought about by the anticipated scenario of presidential elections in North America, particularly in Mexico and the United States,” explained Cortez. .
The Pemex Finance Director explained that the goal is to achieve this new arrangement by the middle of next November, prior to the closest PMI expiration in the first days of next December.
Alberto Jimenez, Pemex Financing and Investment Manager detailed that the short term debt of the Mexican state company rises to 31 thousand 413 million dollars to the third quarter of 2023, of which $15.2 million correspond to amortizations from September and August of this year.
In addition to 800 thousand dollars corresponding to productive chains and factoring and 9.5 million dollars for revolving, an amount that seeks to refinance in the Jumbo Deal.
Likewise, 4.7 million dollars are expected for the monetization of Mexican Government bonds and 1.23 million dollars corresponding to accrued interest.
Pemex’s payment strategies
Meanwhile, Pemex reported that, although About 17 billion dollars are owed to suppliers and contractorsthe flow of payments will continue and will implement strategies to accelerate pending payments.
Cortez specified that, although the amount seems high, he also estimates contracts that do not necessarily represent immediate payment obligations.
He said that Pemex has already disbursed almost 300 billion pesos (16,483 million dollars) so far in 2023 and recalled that in 2022, suppliers were paid 445,148 million pesos (24,458 million dollars).
“We have set the goal that in the coming months we can considerably reduce the delay that is brought, in response to some overdue debts and in a greater effort that, in view of an upcoming closure of administration, speaking colloquially, Let’s deliver clear accounts and that this does not represent any complication or any issue,” he insisted.
He also recalled that the Mexican Congress has reduced its tax rate shared utility right (DUC) that pays for each extracted crude oil barrel from 65% to 40% in 2022 and 2023 and will be reduced to 30% in 2024, with the approval of the 2024 economic package.
Likewise, the budget support that the Mexican Government will provide for 145 billion pesos (7,967 million dollars), which together with the DUC tax reductionwill allow you to pay your debt in 2024, and clarified that in 2023 financial debt payments of 1.5 million dollars will be covered.
2023-10-28 01:13:31
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