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Mexico’s CFE reopens CLO

Published 1 Min Read

Mexican state-owned power company Comision Federal de Electricidad (CFE) reopened a conduit program backed by loans extended by ING Barings, which is also lead on the transaction. The CFE issued Ps665 million (US$61 million) at a yield of 61 basis points over six-month Cetes treasuries. The tenor on the deal is nearly 10 years. This program is used to finance specific projects run by CFE, which is a de facto monopoly in certain areas of electricity. The company generates, transmits and distributes power for 21 million clients, representing the vast majority of the Mexican population. In terms of assets, it looms as the country’s second largest company, with a capacity of 43,727 megawatts (MW).

Elsewhere in Mexico, volatility in debt markets has led to a delay in transactions. Especially sensitive because its yield will be nominal, an RMBS for state agency Infonavit has been rescheduled for the second half of March.

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