Mexico’s CFE to Price MXP1.5bn

Mexico’s Comisión Federal de Electricidad will today price MXP1.5bn in 2017 certificados bursatiles, marking the first sizable issue to hit the local market in several weeks. The offering, of a typical size for CFE, has an average life of five years and will be priced over 3-month Cetes, with guidance in a 25bp-28bp range, according to an executive close to the deal. The 91-day Cetes priced at 7.44% Tuesday, according to the Central Bank. The offering is backed by a senior unsecured term loan from BBVA Bancomer, sole bookrunner on the deal. Through the loan, CFE provides senior unsecured pledges of interest and principal payments to a trust. Moody’s assigned a Baa1/Aaa.mx rating to the deal. CFE is the Mexican government’s agency responsible for the strategic development, construction, operation, and maintenance of Mexico’s electricity system.