UPDATE 3-Mexico's Pemex sells peso, sterling bonds

(Recasts to add sale of bonds in UK)

MEXICO CITY, May 20 (Reuters) - Mexican state oil company Pemex said on Wednesday it placed 10 billion pesos ($773 million) of local currency notes and a 350 million sterling bond on the international market.

Pemex said in a statement that it placed 6.5 billion pesos in three-year bonds and 3.5 billion pesos in seven-year bonds. The issue is part of a program to place as much as 70 billion pesos in debt to fund new investments.

The sterling issue, which comes due in 2022, carries a coupon of 8.25 percent, Pemex said. Barclays and Deutsche bank led the sterling issue, which was more than two times oversubscribed.

Pemex is in the midst of a major capital expenditure program aimed at reversing the slide in the country's oil production. It plans to invest $19.4 billion this year in new oil fields, refineries and other infrastructure.

Pemex said it sold the three-year bonds at a yield of 90 basis points above Mexico's variable TIIE benchmark commercial interest rate. It sold the seven-year bond at a fixed rate of 9 percent.

Total demand for the two placements, managed by Citigroup unit Banamex, BBVA Bancomer and Santander, was 19 billion pesos.

Pemex Chief Executive Jesus Reyes Heroles said in January that the company plans to increase its overall debt load by up to $3 billion this year. Total debt sales this year are expected to reach $10 billion to pay for the capital expenditure program and refinance debt coming due. ($1=12.93 Mexico pesos) (Reporting by Gabriela Lopez; Editing by Gary Hill)