Mexico has become the leading issuer of external debt among emerging economies in 2025, raising over US$41 billion in bonds, according to Bloomberg. The surge in borrowing is largely driven by the government’s urgent efforts to rescue Petroleos Mexicanos (Pemex), the state-owned oil giant grappling with mounting financial woes.
Pemex, burdened by nearly US$100 billion in liabilities, has long been a cornerstone of Mexico’s energy sector. However, years of underinvestment, declining production, and controversial international commitments—such as supplying hydrocarbons to Cuba at no cost—have strained its finances. In response, the administration led by the Morena party has launched an aggressive debt-financing strategy to stabilize the company’s balance sheet.
Recent reports indicate that Mexico issued US$12 billion in dollar-denominated bonds maturing in 2030, exceeding initial plans of US$10 billion. These instruments, known as pre-capitalized notes, aim to inject liquidity into Pemex without direct sovereign guarantees, though credit agencies have flagged the move as a potential risk to Mexico’s fiscal stability.
Critics argue that Morena’s approach amounts to mortgaging the country’s future. “This level of indebtedness is unprecedented and unsustainable,” said a financial analyst familiar with the deal. “It’s a short-term fix that could have long-term consequences for Mexico’s credit rating and economic resilience.”
Despite the concerns, the government maintains that the debt issuance is part of a broader liability management plan designed to diversify funding sources, reduce interest expenses, and improve liquidity for Pemex. Whether this strategy will succeed in reviving the oil giant—or leave Mexico deeper in debt—remains to be seen.
As global markets watch closely, Mexico’s gamble on Pemex could redefine its economic trajectory for years to come.
Source: OEM
