Cleary Gottlieb advises Pemex on $12.5 billion repo and securities lending deal
Cleary Gottlieb advised Petróleos Mexicanos (Pemex) on negotiating and executing a series of bilateral repurchase agreements with three international banks, along with a related securities lending transaction involving a special-purpose vehicle (SPV). The transactions closed on August 18, 2025.
Following the securities lending transaction, Pemex received $12.5 billion in U.S. Treasury securities from the SPV, which had purchased them using proceeds from a Mexico-backed P-Caps issuance finalized on August 14, 2025. Pemex subsequently transferred those Treasuries through repo agreements with BofA Securities, Citigroup Global Markets, and J.P. Morgan Securities to secure additional liquidity.
The repo and securities lending arrangements will gradually amortize and are set to conclude in August 2030. By the end of the term, Pemex expects to have fully repaid the international banks under the repo agreements, receiving back all relevant U.S. Treasury securities and their proceeds.
These assets will then be returned to the SPV in line with the original securities lending terms. The proceeds received by Pemex under the repurchase agreement transactions are used to improve its financial position.
Cleary Gottlieb team was all based in New York and led by partners Deborah North (pictured), Jorge Juantorena, Manuel Silva, and Clayton Simmons, and associates Ignacio Lagos, Tianlun (Peter) Zhang, and Alejandro Martinez-Inzunza. Partner Matthew Brigham and associate Michael Eis advised on tax matters.
