Petróleos Mexicanos (Pemex) is set to be the first Mexican company to issue debt through the newly-launched ‘Cebures’ service with Euroclear.
The new Pemex bonds will be issued domestically through Indeval, the Mexican central securities depository (CSD), and will provide investors outside of Mexico access to domestic Mexican peso (MXN)-denominated securities.
“We are proud to be the first Mexican company to take advantage of the innovative new link with Euroclear for Cebures,” said Rodolfo Campos, Pemex’s treasurer.
“Once this new issuance has closed, it will raise the total amount outstanding of Pemex’s 7.47% Cebures due 2026 to MXN25.3bn – approximately MXN8.3bn corresponding to the original issuance in November 2014 and an additional MXN17bn corresponding to this re-opening, of which MXN9bn was allocated to international investors – and, more importantly, also make this bond Euroclearable.
“Having MXN-denominated securities settle through Euroclear will provide international investors access to the world’s leading post-trade service provider, and we believe it will help to lay the foundations for the future growth of Mexico’s corporate debt market.”
Stephan Pouyat, global head of capital markets for Euroclear, added: “We applaud Pemex as the first issuer to take advantage of the new Cebures service. Moreover, we thank Mexico’s Ministry of Finance and Public Credit and Morgan Stanley, as structuring agent for the international syndicate, for their drive and cooperation which has proven invaluable in achieving our common objective, together with Pemex, of issuing this Cebures bond so soon after the service launch date.
“Domestic issuers can now use Euroclear’s services for Cebures to tap into the liquidity provided by international investors, through a simple and cost effective channel. The launch of the Cebures service enhances Euroclear’s existing government bond offering for Mexico by pairing the need of Mexican corporates to access greater and more diverse sources of liquidity with the appetite of international investors to diversify and support the growth of the Mexican economy.”
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
While corporates have more choice when it comes to choosing financial services, the core relationship between banks and businesses hasn't changed, argues Michael Cummins, head of treasury solutions at Citizens Bank.