July 24, 2017 / 5:03 PM / a year ago

Mexico's Pemex says $5 bln bond deal covers needs through 2018

MEXICO CITY, July 24 (Reuters) - Mexico’s national oil company Pemex said on Monday that recent bond placements totaling about $5 billion would cover its minimum financing needs through the end of 2018.

Petroleos Mexicanos, as the company is formally known, said on Sunday it had successfully reopened two long-term bonds to raise about $5 billion, and would use some of the proceeds to repurchase debt expiring over the next two years.

Petroleos Mexicanos said in a statement the operations would consolidate its financial liquidity and diversify its sources of financing.

The bonds reopened mature in 10 and 30 years, when they will pay a return of 5.75 percent and 6.90 percent, respectively.

Pemex has been battling heavy debt and faces increased competition from private firms after a sweeping opening up of the energy industry was finalized in 2014 and ended the company’s decades-long monopoly.

President Enrique Pena Nieto, who appoints the chief executive of the Mexican oil company, will end his six-year term in November 2018. (Reporting by David Alire Garcia; Editing by Richard Chang)

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