CFE Charges Up Local Issue

Mexico’s Comision Federal de Electricidad (CFE) has filed to sell up to MXP4bn in domestic bonds, according to regulatory documents. The issuer has the option to sell both MXP and UDI-denominated notes, at tenors of up to 12 years, under a MXP24bn shelf. The transaction, rated AAA on a national scale, still requires approval but documents indicate April 24 as the offering date. BBVA is managing the transaction, widely expected in the wake of a recent successful MXP10bn domestic sale from fellow state-owned energy firm Pemex. Mexico’s finance ministry had been working with the 2, so that they might offer transactions that could set pricing benchmarks and help resolve the impasse between investors and corporate issuers that has shuttered the domestic bond market. April 2, Pemex sold MXP6bn in 2012 bonds at TIIE plus 100bp and MXP4bn in 2016 bonds at a fixed 9.15% in a well oversubscribed issue that sets price points for CFE.