Mexico Plans $7–10 Billion Debt Sale to Support Pemex

Mexico's Finance Ministry has announced a financial rescue plan for Pemex, the world's most indebted energy company, aiming to raise between $7 billion and $10 billion through the issuance of special pre-capitalized notes (P-Caps). These notes are designed to inject liquidity without constituting a full federal guarantee, helping Pemex meet immediate bills and operate through 2025 while keeping direct sovereign liability separate. Pemex faces enormous financial challenges, including $101 billion in financial debt and nearly $20 billion owed to suppliers. Despite repeated state support, the company continues to incur significant losses, with critics urging deeper fiscal and operational reforms. The government insists this deal serves as a bridge, with broader strategies expected to be announced soon. Pemex's financial health remains crucial to Mexico's economy, and the bond market reacted positively to the announcement, with Pemex bonds surging on the news.