CFE to Retap Local Bonds

CFE’s dual-tranche deal expected January 11 will be for up to MXP9bn, according to a banker on it. It is a retap of its 4-year floating and 10-year fixed rate bonds, according to a regulatory filing. Pricing has not yet been determined, adds the banker. BBVA Bancomer, Banamex and ING are joint leads on the sale for the federal electricity company. The bonds are rated AAA on a national scale. Proceeds will go toward working capital and to refinance existing debt. The original deal priced December 2. The 10-year tranche was for MXP9.0bn, after total orders reached MXP14.6bn. The bonds priced to yield 7.96%, or Mbonos plus 120bp, in line with guidance, according to bankers on that sale. The 4-year was for MXP5.0bn, on MXP8.4bn in demand. That tranche priced at 26bp over TIIE, tight to guidance of 30bp.