CFE Raises MXP7bn

Mexico’s Comision Federal de Electricidad (CFE) has raised MXP7bn ($522m) from a reopening of its 2014 and 2020 bonds, seeing more than MXP13bn in demand. The transaction is the first local bond since Mexichem’s MXP2.5bn issuance on September 8, and only the second since August 9. CFE’s 2014 bond paying the TIIE+26bp was reopened for another MXP3.5bn to yield TIIE+25bp, in line with 20bp-25bp guidance. A 7.96% 2020 bond was also retapped for MXP3.5bn to yield 7.62%, or Mbonos+122bp, inside of 125bp-135bp guidance. Demand for the floater topped MXP9bn, while the book for the fixed tranche swelled to MXP4bn plus, according to bankers on the deal. “This transaction was very well-bid and will help set a fresh benchmark going forward,” says one. CFE is raising the funds for general corporate purposes. Banamex, and BBVA Bancomer and ING managed the sale, rated AAA on a national scale.