Pemex in $12.5 Billion Repo and Related Securities Lending

Cleary Gottlieb represented long-time client, Petróleos Mexicanos (Pemex), in the negotiation and execution of a series of bilateral repo transactions with three international banks and a related securities lending transaction with a special-purpose vehicle (SPV).

The transactions settled successfully on August 18, 2025.

Pursuant to the securities lending transaction, Pemex received from the SPV $12.5 billion of U.S. Treasury securities, which the SPV had acquired with the proceeds of a Mexico-backed issuance of Pre-capitalized Securities (P-Caps) that closed on August 14, 2025. Pemex then procured the transfer of such U.S. Treasuries pursuant to three repo transaction with BofA Securities Inc., Citigroup Global Markets Limited, and J.P. Morgan Securities LLC.

The repo and securities lending transactions amortize and are scheduled to terminate in August 2030, at which point Pemex intends to have paid the repurchase price under the repos to the international banks in full in exchange for the delivery of all the U.S. Treasury securities and their proceeds by those banks, and return such securities and proceeds to the SPV pursuant to the securities lending transaction.

PEMEX is expected to use the proceeds received under the repurchase agreement transactions to improve its financial position.