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Overview

ICBC contributes to $4.5 billion syndicated, dual-tranche loan to Pemex for refinancing purposes

Commitments (Constant USD, 2023)$152,413,867
Commitment Year•2023Country of Activity•MexicoDirect Recipient Country of Incorporation•MexicoSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 30, 2023
Last repayment (originally scheduled)
Aug 29, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Banco Finantia, S.A.
  • Banco Inbursa, S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa (BInbursa)
  • Banco Latinoamericano de Comercio Exterior (Bladex)
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • Banorte
  • Barclays Bank PLC
  • BBVA México (Formerly BBVA Bancomer)
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • Deutsche Bank AG
  • DZ Bank AG
  • Goldman Sachs Group, Inc.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • ING Bank N.V.
  • Intercam Banco
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • Monex
  • Morgan Stanley
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Natixis
  • Société Générale S.A. (SocGen or Societe Generale)
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Nacional Financiera (NAFIN)

State-owned Commercial Banks

  • Bank of China (BOC)

State-owned companies

  • Banco Nacional de Comercio Exterior

Receiving agencies

State-owned companies

  • Petróleos Mexicanos (PEMEX)

Guarantors

State-owned companies

  • Pemex Exploración y Producción
  • Pemex Logística
  • Pemex Transformación Industrial

Loan description

ICBC and BOC contributions to $4.5 billion dual-tranche syndicated loan to Petróleos Mexicanos for refinancing purposes in 2023

Grant element•0.2976%Interest rate (t₀)•9.39097%Interest type•Variable Interest RateLoan tenor•1-month rateMaturity•1.75 years

Narrative

Full Description

Project narrative

On November 30, 2023, Petróleos Mexicanos (Pemex) and its subsidiary P.M.I. Trading Designated Activity Company (PMI) signed a set of syndicated loan (facility) agreements worth $8.3 billion to refinance their existing debts. 30 banks participated in the syndicate: Bancomext, Bank of America, Bank of China, Banorte, Barclays, BBVA, Bladex, BNP, CACIB, Citi, Deutsche, DZ Bank, Finantia, Goldman Sachs,HSBC, ICBC, Inbursa, ING, Intercam, JP Morgan, Mizuho, Monex, Morgan Stanley, MUFG, Nafin, Natixis, Santander, Scotiabank, SMBC, and Société Générale. The debt financing package consisted of three facilities: (1) a $4,572,416,000 syndicated (dual-tranche) revolving credit facility for Pemex, (2) a $2,218,750,000 (dual-tranche) syndicated term loan facility for Pemex, and (3) $1,500,000,000 syndicated revolving credit facility for PMI. The $4,572,416,000 syndicated revolving credit facility bears interest at a floating rate linked to 30-day SOFR plus a variable margin between 235 and 300 basis points for Tranche A and between 375 and 575 basis points for Tranche B, respectively, in each case determined by Petróleos Mexicanos' long-term currency denominated debt ratings, with Tranche A maturing in June 2024 and Tranche B maturing in November 2026. The $2,218,750,000 syndicated term loan facility bears interest at a floating rate linked to 30-day SOFR plus a variable margin between 235 and 300 basis points for Tranche A and between 375 and 575 basis points for Tranche B, respectively, in each case determined by Petróleos Mexicanos' long-term currency denominated debt ratings, with Tranche A maturing in June 2024 and Tranche B maturing in November 2026. The $1,500,000,000 syndicated revolving credit facility bears interest at a floating rate linked to 30-day SOFR plus a variable margin between 375 and 575 basis points determined by Petróleos Mexicanos' long-term currency denominated debt ratings, maturing in November 2026. The PMI facility was guaranteed by Pemex, and all three facilities are guaranteed by Pemex Exploración y Producción, Pemex Transformación Industrial and Pemex Logística, and their respective successors and assigns.

Staff comments

1. Cleary Gottlieb represented Petróleos Mexicanos (Pemex), the Mexican state-owned oil company, and its subsidiary P.M.I. Trading Designated Activity Company (PMI). 2. BBVA Mexico, Bank of America, Bank of China, Citigroup, JPMorgan Chase, Mizuho, Sumitomo Mitsui Banking Corporation and Bank of Nova Scotia acted as global coordinators, joint bookrunners and joint lead arrangers. 3. GLAS USA LLC acted as administrative agent for the syndicated facilities. 4. The sizes of the contributions from Bank of China and ICBC to the $4,572,416,000 syndicated (dual-tranche) revolving credit facility are unknown. For the time being, AidData assumes equal contributions across all of the known participants in the syndicate ($152,413,866.66). 5. The sizes of the two tranches under the $4,572,416,000 syndicated revolving credit facility are unknown. For the time being, AidData estimates a maturity that is based on a simple average (21 months) of the 6-month tranche and the 36-month tranche. 6. AidData has estimated the all-in interest rate by adding 4.05% (the midpoint of the 2.35% minimum margin and the 5.75% maximum margin) to 30-day SOFR on November 30, 2023.