CFE Issues US$1.1 Billion in Bonds on the Mexican Stock Exchange

The Federal Electricity Commission (CFE) issued long-term bonds totaling US$1.1 billion on the Mexican Stock Exchange, according to information released by the exchange.

The issuance consisted of three tranches, the first of which—CFE 26X—was for US$294.5 billion with a maturity of approximately three years.

The second, called CFE 26-2X, raised US$326.9 million with a term of approximately 10 years. The third, named CFE 26U, raised US$556.7 million with a term of approximately 40 years. The CFE 26X and CFE 26-2X tranches carry the “Sustainable ESG” label and are aligned with the electric utility’s sustainable financing framework.

According to the information released, the net proceeds raised through the CFE 26X and 26-2X tranches will be used to repay obligations arising from long-term stock certificates and short-term bank loans from domestic and international banks.

It is specified that the three tranches received the highest ratings on a national scale issued by the participating rating agencies: “AAA.mx” from Moody’s Local MX, “AAA(mex)” from Fitch Mexico, and “mxAAA” from S&P Global Ratings.

As leading underwriters, the following firms participated: Banorte Brokerage House, BBVA Mexico Brokerage House, Santander Brokerage House, and Scotia Inverlat Brokerage House.

This was the CF's second debt issuance so far this year, following the issuance of US$1.5 billion in bonds on international markets, maturing in January 2026.

The move was in response to the change in the federal government's credit rating.