CFE ABS Retaps for MXP3.8bn

A reopening of a securitization of loans to Mexico’s CFE has raised MXP3.8bn. The 2020 floating-rate amortizing notes paying TIIE plus 45bp are backed by loans made by Banamex to the state-owned utility. The reopening was negotiated to yield TIIE plus 40bp. Bankers say the price represents a reoffer at a slight premium to the 95 cent face value. The face value is lower than 100 because the notes have already had their first amortization. The bonds have an average life of 5 years, and are rated AAA on a national scale. Banamex and Ixe managed the sale, which comes under a MXP24bn shelf. The original deal raised MXP3.25bn in July 2010.