AP NEWS

Mexico’s Pemex gets refinancing worth $8 billion

May 13, 2019
FILE - In this Nov. 22, 2013 file photo, oil workers set the drill on the Centenario deep-water drilling platform in the Gulf of Mexico off the coast of Veracruz, Mexico. Mexico's government announced on Monday, May 13, 2019 that its heavily indebted state-owned oil company Petroleos Mexicanos (Pemex) has won refinancing and extended lines of credit from three private banks to handle a debt that currently totals over $100 billion. (AP Photo/Dario Lopez-Mills, File)

MEXICO CITY (AP) — Mexico’s heavily indebted state-owned oil company has won about $8 billion in refinancing and extended lines of credit from three private banks.

Petroleos Mexicanos needed the refinancing to handle a debt that currently totals over $100 billion.

Experts believe the company known as Pemex is technically insolvent, but its debt is backed by the Mexican government. President Andrés Manuel López Obrador has promised to rescue the firm.

Japan’s Mizuho, Britain’s HSBC, and the U.S. bank JP Morgan committed Monday to refinancing $2.5 billion in debt and extending revolving credit lines worth $5.5 billion.

The government also announced it will lower Pemex’s tax and transfer payments by about $1.5 billion, which it hopes will the company to invest in exploration and production.