UBS and JP Morgan are leading their second equity-linked privatisation of this week as Petróleos Mexicanos (Pemex), the Mexican oil company, launched a $1.4bn (€1.1bn) exchangeable bond into Spanish rival, Repsol. Merrill Lynch is also leading the deal.

Pemex is the unlisted national oil company of Mexico, owned by the Mexican government. The bond is being issued by RepCon Lux, a Luxembourg incorporated company with guarantees from Pemex. The bond has a rating of Baa1 from Moody's Investors Service and BBB-minus from rival Standard & Poor's (S&P).