AMLO’s $20 Billion of Pemex Aid Leaves Bondholders Wanting More
- President seeks to reassure investors, but spreads are stuck
- Latest effort by AMLO includes $3.5 billion capital injection
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Mexican President Andres Manuel Lopez Obrador has pulled out all the stops this year to assure investors that the aging state oil company is not only going to survive, but also thrive.
Just this week, he announced a $3.5 billion capital injection into Petroleos Mexicanos, plans to create a new five-year business plan and a series of bond-market transactions to reduce the debtload. That comes on top of initiatives this year to take over debt payments, cut taxes and overhaul management. Lopez Obrador told investors that Pemex debt is as safe as the sovereign’s.