CFE Places Local Bonds

Mexico’s CFE has sold MXP3.42bn in 2019 bonds in the domestic market. The issuer priced MXP1.47bn in MXP-denominated bonds at a fixed-rate of 8.85%, and MXP1.95bn-equivalent in UDI-denominated notes at 4.60%. The state-owned utility plans to use proceeds from the issuance to recaptialize public works investments. Banamex and Bancomer managed the sale, rated AAA on a national scale. CFE sold MXP1.1bn worth of 2012 floaters in June, under a joint program with Bancomext, and helped reopen the Mexican bond market this year with a MXP3.8bn in 2019 offer in April.