Mexico opens tap on energy sector

摘要

Bankers are bracing for a deluge of Mexican equity issues in coming years, including an eventual jumbo IPO from state-owned oil monopoly pemex, now that the country's president has signed a landmark energy reform into law. "We have spent the last few decades sacrificing chicken for energy reform in Mexico and it's finally happened," said an equity portfolio manager in California. "I've essentially been waiting for this my entire career. I see the IPOs [and follow-ons] really flowing once 2015 and 2016 hit." Energy-related issuers are expected to start exploring equity financing options once the government decides on the assets Pemex can keep and the ones open to private-sector participation. That so-called "Round Zero" stage of the reforms - in which Pemex is seeking to keep 83% of hydrocarbon reserves and 30% of oil and gas reserves - was fast-tracked last week from an original deadline of September 17. "Round Zero is the next concrete step here and, once that's done, I think the RFPs will start," said a senior ECM banker in New York.