The Federal electricity commission (CFE) will debut in the global sustainable bond market with an offer in which seeks to raise up to 2,200 million dollarsin the midst of the boom that financing is experiencing with an environmental approachsocial and better corporate governance (AS).
The offer of the Mexican state electric company will be offered in two tranches. One has set itself a term of almost 30 years or due February 9, 2051 and with which he estimates a collection of 800 million dollars and a fixed annual interest rate of 4,677 percent.
A second tranche with which it estimates to raise 1,200 million dollars and offer an annual interest of 3.348% and will mature on February 9, 2031 or a term of nine years, show the issuance prospectus document.
“CFE plans to use the net proceeds from the issue to finance or refinance new or existing debt from green or social projects under an ESG framework; While these projects are starting, a part of these resources from both sections will be used to repay company debt”, stated the rating agency S&P Global Ratings who assigned the note ‘BBB’ to said placement and which is in the investment grade range.
The rating that was granted to the state production company, explained the rating firm, has the same level as our issuer credit rating in foreign currency on a global scale, since they will have guarantees from the CFE subsidiaries, in line with the previous broadcasts.
S&P Global Ratings pointed out that, due to the company’s strong planned capital expenditures in its generation, transmission and distribution divisions, the CFE will continue with a high level of indebtedness, since the operating cash flows would not be sufficient and the company you would need to increase your debt.
“A more significant deleveraging of the CFE would come only in the case of government capital injections or the execution of sales of non-strategic assets; what we do not anticipate will happen in the coming years”, said the rating agency.