Mexico’s state-owned electric utility CFE plans to raise as much as MXN15 billion ($804 million) with a three-part bond sale in the local market to raise cash for ESG projects, according to Fitch Ratings.
CFE plans to price a three-year note at a variable rate, a 10.5-year bond at a fixed rate, and a 15-year note indexed to local inflation-adjusted units of account called UDIs, Velia Valdés, director of Latin American corporates at the ratings agency, told LatinFinance.
The Mexican utility will use the proceeds of the AAA-rated deal to finance projects or initiatives with a social or environmental focus, Fitch said in a report published Monday. It didn’t specify whether CFE will sell labeled or ordinary bonds.
According to the report, the company plans to invest $23.4 billion over the next decade, with 53% of the outlays earmarked for power generation, 32% for transmission, and 15% for distribution. The firm seeks to add 2,731 MW of combined-cycle capacity by 2028, it added.
CFE didn’t respond to a request for comment on the report.
In April, the company raised MXN15 billion in a three-part bond deal that represented its largest-ever sale of sustainable debt.
Meanwhile Sakly, the real estate division of Mexican retailer and consumer lender Grupo Coppel, plans to raise up to MXN5 billion in its first bond issuance under a MXN15 billion program, according to a securities filing. The issuer aims to price a three-year bond at a floating rate and a seven-year note at a fixed rate in the October 16 offering.