Exclusive: Pemex banks on high oil prices to pay off debt, after costly bond issue

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Exclusive: Pemex banks on high oil prices to pay off debt, after costly bond issue
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After the market imposed a sky-high rate on bonds Pemex issued in January, Mexico's state oil company is preparing to pay its debts on its own this year and will turn to the government - rather than the market - for help if oil prices plunge, two sources told Reuters.

That support was not forthcoming in January, forcing Pemex to

But both sources said Pemex was banking on high crude oil prices to maintain the investments for this year as well as meet its financial obligations - without issuing more bonds. Over the current administration, Pemex has received an estimated $45 billion in capitalizations, direct transfers, tax exemptions and other contributions, according to a company presentation in January seen by Reuters.

The company paid in January at least eight coupons of different bonds that became due as well as $1.1 billion for the remainder of one issued in 2013.

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