Petroleos Mexicanos, or Pemex, is in the market with $2 billion in 10-year senior, unsecured notes, according to a source familiar with the deal.
The state-owned oil company is a frequent issuer popular with investors. Investors like Mexico's growth story, especially as it is expected to benefit from the U.S. economic recovery, and see Pemex as a way to get exposure to this potential upside.
The current bond, initially talked in the range of 185 basis points over comparable Treasury yields, tightened 15 basis points on strong demand. The deal has not been priced yet.
Last time Pemex was in the market was in October when it sold a $1 billion tap of its 2044 bond at a yield of 4.824%.
Issuance from emerging-market companies and sovereigns is at a record pace this year, widely beating forecasts, as investor demand for these higher yielding bonds surges.
Copyright (c) 2012 Dow Jones & Company, Inc.
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