CFE Hits Domestic Market

Mexico’s Comision Federal de Electricidad (CFE) has raised MXP10bn ($768m) in the country’s domestic bond market. The state-owned utility sold new 10-year bonds and retapped five-year floating rate notes, in a Mexican market that remains open and active. CFE priced MXP6.75bn in the 2023 at 7.77% or Mbonos+145bp, on the wider end of 130bp-140bp price talk, according to people familiar with the terms. The 2018 reopened for MXP3.25bn at a 100.085 price and TIIE+13bp, flat to secondary levels and inside of the original TIIE+15bp pricing. Demand topped MXP16bn with the fixed-rate tranche seeing MXP11bn in orders from a diverse set of investors. The issuance is rated AAA on a national scale, and was managed by Banorte-Ixe, BBVA Bancomer, Santander and HSBC. CFE’s previous domestic sale was in June, when the issuer originally priced the 2018, to raise MXP12bn.