Tuesday, May 4, 2010

Mexico's Pemex to issue $6.3 bln more debt in 2010


* Pemex to borrow $6.3 billion in rest of 2010

* Company sees up to $4.4 billion from capital markets

* Pemex ended 1st quarter with $7.74 bln short-term debt (Adds quote, background on debt)

MEXICO CITY, May 4 (Reuters) - Mexico's state oil monopoly Pemex expects to borrow another $6.3 billion by the end of the year to fund capital investment and refinance debt, company executives said on Tuesday.

"We think for the rest of 2010 we'll have $6.3 billion in issuance," said Pemex's Chief Financial Officer Carlos Trevino on a conference call with bond investors.

The company expects to raise about $4.2 billion to $4.4 billion on capital markets, Trevino said, with the rest coming from other sources.

Pemex ended the first quarter with $7.74 billion in short-term borrowing.

The heavily indebted company relies on debt sales to fund its capital investment program due to the high taxes on oil output it must pay the Mexican government. (Reporting by Robert Campbell; Editing by James Dalgleish)

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