Talk Heard on CFE MXP Trade

Mexico’s Comision Federal de Electricidad (CFE) is heard looking to pay TIIE+ 25bp for a new MXP1.358bn ($99m) floating-rate bond. The 4-year notes have an estimated issuance date of December 9, and will raise funds to cover infrastructure project expenses. The deal would be the fourth issuance under the Fideicomiso de Administracion de Gastos Previos (FAGP) trust, which is authorized for up to MXP3bn. The FAGP trust was established in August 2003 with Bancomext acting as trustee. The state-owned utility uses the FAGP trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program that cannot be reimbursed before project completion. Ixe is managing the transaction, rated AAA on a national scale. CFE most recently visited the domestic market in September when it raised MXP7bn from a reopening of its 2014 and 2020 bonds, after seeing more than MXP13bn in demand.