CFE Prices Domestic Jumbo

Mexico’s CFE has raised MXP5bn through the sale of 7 and 10-year domestic bonds. The state-owned utility priced MXP2.6bn in 2017 floaters paying the TIIE benchmark plus 52bp. It also did MXP2.4bn in 2020 fixed-rate notes paying 8.05%, or Mbonos plus 120bp. Both priced at the tight end of guidance of TIIE plus 50-60bp, and Mbonos plus 120-130bp, respectively, according to a banker on the trade. Total demand was about MXP8.6bn, the banker says. Banamex and Santander managed the sale, rated AAA on a national scale. CFE is also readying a MXP500m 3.5-year floating rate transaction through Ixe, expected in early April. Mexican DCM this year has been characterized by high volume with little issuer variety. CFE follows jumbo issuance from Pemex and America Movil.