Milbank, Tweed, Hadley & McCloy has represented a group of international banks acting as initial purchasers in an offering of fixed-rate notes issued by Mexico’s state-owned oil company, Petróleos Mexicanos (Pemex) guaranteed by the U.S. Export-Import Bank.
The international bank group consisted of Citigroup, Crédit Agricole and Santander. The series of $525 million fixed-rate notes due 2025 was priced with an interest rate of 2.460% per annum.
Pemex is using the proceeds from the sale of the notes primarily to finance its purchase of eligible goods and services from U.S. manufacturers and suppliers for use at on-shore and off-shore oil and gas exploration and production areas of Pemex Exploración y Producción.
The Milbank team was led by Transportation and Space partner Helfried Schwarz, Global Securities partner Arnold Peinado and special counsel Kevin MacLeod and included Tax partner Andrew Walker and associates Conor Colasurdo, and Michael Goon.
“This is the ninth offering by Pemex using the U.S. Ex-Im Bank guaranteed notes structure and we’re pleased to have represented the underwriters on all of them,” Mr. Schwarz said. He noted the Firm previously advised on two offerings in 2014 with total proceeds of $1 billion and three offerings in 2013 with total proceeds of $1.5 billion.
“Investors are showing keen interest in Mexico’s energy sector as the country continues to relax restrictions on foreign participation in resource development,” Mr. Schwarz added. “As a result of these transactions, Pemex is able to substantially increase its own commerce with a wide range of U.S.-based suppliers to advance production of oil and gas assets.”
Source: www.milbank.com
