CFE Raises MX$15 Billion in Record Sustainable Bond Issuance

CFE successfully issued MX$15 billion (US$865 million) in sustainable bonds (Cebures) on Sept. 30, marking one of the largest corporate debt placements in Mexico’s local market since 2020. The offering, set to settle on Oct. 6, drew strong investor demand, totaling MX$32.6 billion, or 2.17 times the amount offered, underscoring confidence in the company’s financial management and expansion strategy.

The issuance, which received the highest local credit rating of AAA from Fitch Ratings, Moody’s, and S&P, reflects growing investor trust in both CFE’s leadership and the federal government’s policies. Seven of Mexico’s 10 pension funds (Afores), along with banks, insurers, investment funds, and development institutions, participated in the deal. The robust demand allowed CFE to tighten spreads by an average of 19 basis points across the three tranches, generating financial savings.

The transaction included three maturities: a three-year note (CFE 25-3X) at TIIE +49 basis points for MX$2.7 billion, a 10.5-year note (CFE 25-4X) at Mbono +145 basis points for MX$4.8 billion, and a 15-year note (CFE 252UX) at Udibono +115 basis points for MX$7.5 billion.

CFE emphasized that the operation does not represent new indebtedness, as proceeds will be used to refinance short-term obligations and cover a maturing bond in November. Labeled “Sustainable,” the issuance commits the utility to channel an equivalent amount toward green and social projects aligned with its Sustainable Financing Framework, including renewable energy, energy efficiency, and expanded access to basic services such as electricity and internet in marginalized communities.