Pemex, Mexico’s state oil company and the most indebted in the world, is listing $3.77 billion in foreign bonds on the Mexican Stock Exchange. These bonds, first issued in Luxembourg and due in 2031 with a 5.95% annual interest, will now be available to local investors via the International Quotation System (SIC). This move aims to attract Mexican buyers as foreign appetite for Pemex debt weakens. Experts suggest that local investors may be more willing to take on the risk, partly because of the company’s strong government backing. Pemex has not said exactly why it’s listing these bonds in Mexico, but financial analysts see it as a tactic to tap into new sources of demand. Behind the move is a bigger problem. Pemex owes over $101 billion and continues to operate at a loss. It reported a $2.1 billion net loss in the first quarter of 2025 alone. Oil production is falling, down 11% from the previous year, with aging fields and weaker output dragging the company further behind government targets. To avoid further financial strain, the Mexican government is keeping Pemex afloat. In just the first quarter of 2025, it gave Pemex $4 billion. It also allocated $6 billion in the 2025 national budget to help the company pay off debts coming due this year, with another $13 billion due in 2026. Credit rating agencies reflect the danger. Pemex’s Financial Struggles Deepen Moody’s rates Pemex as B3 and Fitch gives it B+, both levels considered “junk” status. Only S&P keeps it at investment grade, based on the assumption that the government will continue to bail it out. Internally, Pemex struggles with unpaid supplier bills, now reaching $20 billion, and fails to meet production targets. Payments to vendors averaged 50 billion pesos per month in late 2024 and early 2025. People close to Mexico’s finance ministry confirm that the government and Pemex meet weekly to monitor risks and cash needs. Options under discussion include refinancing existing debt or transferring some obligations directly to the government. However, no structural changes have been made. Pemex’s debt and declining output now threaten more than just its balance sheet. Government money spent on the company means less for schools, healthcare, and infrastructure. As support deepens, Pemex has quietly shifted from being a national asset to a growing liability — one that Mexico’s economy can no longer ignore.