CFE Defines Pricing Expectations

Mexico’s Comision Federal de Electricidad (CFE) is looking to pay Mbonos+130bp-140bp for the 10-year portion of a domestic bond sale scheduled to price Wednesday, according to people following the transaction. The government electricity monopoly is targeting up to MXP10bn ($766m) through the 10-year fixed-rate portion and a 5-year tranche paying a spread to the TIIE. The issuance falls under a MXP100bn program, and is to be managed by Banorte-Ixe, BBVA Bancomer, Santander and HSBC. CFE’s most recent domestic bond was in June, when the issuer priced a MXP12bn ($911m) floating rate note via Banorte-Ixe, HSBC and Santander. It is rated AAA on a national scale.