MEXICO CITY, June 1 (Reuters) - Mexico's state oil company Petroleos Mexicanos (Pemex) plans to launch a $2 billion-issue of global unsecured notes Thursday, due 2029, according to a source familiar with the deal, adding it would use the funds to pay bills to suppliers and contractors.
The deal, handled by Citigroup as the sole underwriter, will apply to a limited group of institutional investors, the source said. Citi did not immediately respond to a request for comment.
"It is not open to the entire market," the source said.
Pemex on Tuesday announced the issuance of notes with a coupon of 8.75%. It did not respond to a request for comment Thursday.
Pemex owes a little more than $13.5 billion to providers in bills that have accumulated over the years.
S&P Global Ratings assigned a 'BBB' rating to Pemex's proposed senior unsecured note issue following the announcement Tuesday.
Pemex, which has an implicit guarantee from the government for its debt, has $109 billion in financial debt, according to its latest quarterly results. (Reporting by Ana Isabel Martinez; Writing by Kylie Madry; Editing by David Gregorio)