CFE Readies Infra Trust Bond

Mexico’s Comision Federal de Electricidad (CFE) is preparing to raise MXP2.7bn ($206m) in its next issuance through the Fideicomiso de Administracion de Gastos Previos (FAGP) trust, according to Moody’s, which assigns an AAA national scale rating. There were no other details immediately available for the transaction, which can be in UDIs or MXP. The previous FAGP sale was a 3-year bond done last year at TIIE+35bp through Scotia. The state-owned utility uses the Bancomext-guaranteed FAGP trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program that cannot be reimbursed before project completion.