FILE PHOTO: Mexico's President Andres Manuel Lopez Obrador attends a news conference at the National Palace in Mexico City, Mexico June 10, 2019. REUTERS/Gustavo Graf/File Photo

MEXICO CITY (Reuters) - Mexican state oil company Pemex [PEMX.UL] signed an $8 billion syndicated loan with more than 20 banks to renew credit lines and refinance liabilities, President Andres Manuel Lopez Obrador said on Thursday.

Pemex, saddled with about $106 billion in debt and facing the prospect of a costly credit rating downgrade, announced in February the financial operation, which is aimed at reducing liabilities and providing funds for investment.

Lopez Obrador said 23 banks participated, both in Mexico and abroad.

“It’s the most important operation of its kind in Mexico,” he wrote on Twitter, adding that it would strengthen Pemex during his six-year term that began last December.

Pemex has said that its net debt will not increase between 2019 and 2022, and that crude production will increase beginning this year, primarily through the development of 20 recently discovered fields.