Archive · 29 Sep 2025
Mexico's $12 Billion Deal for Pemex Spurs Interest
Imagine a company, Pemex, needs money but doesn't want to show more debt.
Mexico helped by using a special trick called P-Caps.
They made a deal worth $12 billion, using money to buy safe investments.
This keeps the debt off the books while still giving Pemex money.
Other countries like Peru might copy this.
It's a bit like a secret way to get money, especially for companies that can't easily borrow the usual way.
However, it might cost more than regular borrowing.
Mexico used pre-capitalized securities (P-Caps) for a $12 billion deal to aid Pemex.
The P-Cap structure allows borrowing without recording debt on balance sheets.
Credit analysts and advisors suggest the tool is gaining interest from other potential borrowers.
Peru and its state-owned oil driller, Petroperu, are considering similar moves.
The structure helps entities facing tight credit conditions, but can be more expensive.
- Who
- Mexico, Pemex, and potential future borrowers such as Peru.
- What
- Mexico completed a $12 billion deal using pre-capitalized securities (P-Caps).
- When
- The deal was completed in July; potential for future deals before year's end.
- Where
- Mexico, with potential expansion to other countries in Latin America and the Middle East.
- Why
- To support Pemex without increasing its debt, and possibly for other entities facing credit issues.
- Financing Tool
- Pre-capitalized securities (P-Caps)
- Mexico's Deal Amount
- $12 billion
- Mexico's Borrower
- Eagle Funding LuxCo (entity)
- Collateral
- US government debt (Treasuries)
- Potential New User
- Peru