MEXICO CITY, Jan.9 (Reuters) – A debt refinancing transaction for Mexico’s national oil company Pemex that swapped the heavily indebted company’s short-term bonds for a new 10-year bond has been completed, announced on Sunday. the Ministry of Finance.

In a statement, the ministry said the short-term debt management program reduced Pemex’s overall indebtedness by $ 3.2 billion, while reducing “financial pressure” on the company between 2024 and 2030. of $ 10.5 billion.

The joint operation between the Department of Finance and Pemex received an injection of $ 3.5 billion from the federal government, the statement added, and will result in an annual reduction of $ 180 million in financing costs of the public company Pemex.

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The reduction comes from the 50 basis point reduction in the spread between the interest rate Pemex pays for servicing its debt and the government’s sovereign debt, the statement said.

Pemex, one of the most indebted oil companies in the world, has struggled with declining crude production for 17 years and in 2020 lost its coveted investment grade rating.

Midway through his six-year term, President Andres Manuel Lopez Obrador has sought to boost the company’s operations and finances while simultaneously canceling oil auctions open to private producers as well as tenders for choose joint venture partners for Pemex, a common tool used to share risk. and awards in the international industry.

Lopez Obrador, a leftist who promotes a state-controlled energy industry, is also seeking to end Pemex’s crude exports for the next several years and to refine oil at home in a bid to make Mexico more energy independent.

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Reporting by David Alire Garcia; edited by Diane Craft

Our Standards: Thomson Reuters Trust Principles.