CFE Clinches Three-Year Floaters

Mexican sub-sovereign CFE has issued MXP1.1bn worth of 2012 floating-rate bonds. They were priced at TIIE plus 75bp, slightly below what bankers running the deal initially expected. A much larger MXP6.5bn offering of 2012s from Pemex done on May 20 fetched a price of TIIE plus 90bp, notes a banker running the CFE deal. The book for CFE was filled quickly, he adds, indicating a strong bid for the national power operator. The notes are the first offering under a special MXP3bn program that the state-owned utility has jointly filed with Bancomext. The two agencies have set up a fideicomiso that will be used to pre-fund certain expenses for certain kinds of infrastructure projects known as productive infrastructure with deferred expenditure impact. Ixe managed the sale, rated AAA on a national scale. CFE sold MXP3.8bn in 2019 bonds in April via BBVA.