The largest bond sale by a Latin American company has been completed by Petroleos Mexicanos, Mexico's state-owned oil company. ?Pemex? raised $1.75 billion through the issue of Perpetual Bonds by a Delaware Statutory Trust as issuer with a guarantee provided by Pemex.
The obligations of Pemex were guaranteed on a joint basis by its three operating subsidiaries depending upon a master guarantee agreement.
Linklaters, the international legal advisors, acted as joint lead managers on the deal. Its team was led by Conrado Tenaglia (Madrid) and Nigel Pridmore (London), with Piers Summerfield and Samantha Manning assisting. Hilary Lord and Eliot Solarz advised the trustee.
Conrado Tenaglia commented: "This was an exciting transaction - the largest bond sale ever by a Latin American company and the first sale ever by a Latin American borrower of perpetual bonds, giving the issuer the option to buy back the bonds after five years. Perpetual bonds are rare and demonstrate confidence in Mexico and Pemex."
Citigroup Global Markets Limited, HSBC Bank and Merrill Lynch International were the joint lead managers, and the Trustee was Deutsche Trustee Company Limited.
Other legal advisers included: Cleary, Gottlieb, Steen & Hamilton (US counsel to the issuer), Ritch Heather y Mueller, SC (Mexican counsel to the joint lead managers and the trustee) and Richards, Layton & Finger, PA (special Delaware counsel to the issuer).