Mexico announced on 22 July a complex financial transaction meant to provide fresh financial support for Petroleos Mexicanos (Pemex). The deal, which involves the issuance of pre-capitalized securities (P-Caps) by a special purpose vehicle (SPV), represents the latest attempt to help the struggling government-owned oil company.

Depending on the specific terms of a planned agreement between the government, the SPV, and the oil company (and, maybe most importantly, the Mexican government’s ultimate intentions), the transaction will be good, very good, or excellent for Pemex.