High Demand for CFE’s Bonds in the BMVBy Perla Velasco | Thu, 11/24/2022 - 08:00
CFE placed sustainable-focused bonds on the Mexican Stock Exchange (BMV). The trade reached a demand two times the contractual amount and 2.5 times the expected amount. The company also said that the resources obtained from the move will allow it to pay off short-term debt. CFE added that this event will extend the maturity profile of the company's debt and strengthen its commitment to financial discipline.
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A study by the Mexican Institute for Competitiveness (IMCO) together with the Friedrich Naumann Foundation (FNF) revealed that from 2012 to 2021, the European Union (EU) spent US$73.74 billion in Foreign Direct Investment (FDI) on ten strategic sectors in Mexico. Investment in the electricity sector reached US$11.44 billion, an amount that represents 11.5 percent of total electricity investments in the country.
CFE reported that it allocated Bonds to the Mexican Stock Exchange (BMV) worth MX$10 billion (US$516.31 million) with a focus on Environmental, Social and Governance (ESG) criteria. The placement has the highest investment grade rating on the AAA local scale, issued by the credit risk assessment agencies Moody's and Fitch. The underwriters were BBVA, Banorte, Citibanamex and Santander. Santander acted as an ESG structuring agent, too.
New Fortress Energy (NFE) and PEMEX signed a contract to produce liquified natural gas (LNG) from the previously-abandoned Lakach field. Lakach’s development had been stalled for six years due to cost pressures, even though the NOC had invested US$1.1 billion in it from 2016 to 2021. Recently, CNH approved PEMEX’s extra investment of US$1.8 billion. New Fortress Energy will add US$1.5 billion to this figure.
To operate pipelines both safely and smoothly, regular and thorough cleaning services must be incorporated into any maintenance program. ROSEN’s innovative and environment-specific cleaning solutions keep operations running safely and smoothly, optimizing asset uptime and life cycle.
US company New Fortress Energy announced it expects to sign a commercial agreement with Mexico’s government for the development of an offshore LNG production plant. New Fortress also planned to complete the drilling of seven wells that PEMEX had already started at Lakach.
During the Forbes Green Economy and Sustainable Development Forum, Gerardo Pandal, Founder, the Climate Reality Project Mexico, said that to address climate change in the coming years, Mexico must boost renewable energy production. The country will have to invest US$60 billion to reach its goal of producing 35 percent of the electricity with clean energy by 2050.
Mexico continues to look for gas storage options in the US, aiming to create an energy reserve for emergencies. Lacking storage has long since been pointed out as a weak spot in the country’s mission to become energy-independent. In 2021, Mexico faced turbulent times due to natural gas shortages on the back of a winter storm in Texas. The high demand for US gas from Europe significantly increased the cost of gas in 2022.
Miami-headquartered Atlas Renewable Energy announced that the solar plant La Pimienta, located in Ciudad del Carmen, Campeche, is fully operational. The plant will supply energy to CFE under a 15-year contract to support the power needs of the Yucatan peninsula.
BloombergNEF’s annual Climascope assessment of the most attractive markets for investment in renewable energy projects ranked Mexico in the 63rd position among 107 emerging markets, and 90th position for all markets. Mexico obtained its lowest score in the category of experience. The report stated that even though Mexico is the second-largest power market in Latin America, its installed renewable power capacity accounts only for 19 percent of its total power production portfolio of 95GW.