Mexico's state power utility Comisión Federal de Electricidad (CFE) has raised US$1.2 billion through a new equity offering by its Fibra E, BNamericas reported on September 4. The proceeds are earmarked for the electrical transmission network, the segment of the system under the greatest strain from Mexico's rising power demand.
The transaction is part of CFE's US$37.5 billion investment plan for 2026-2030, according to BNamericas. The Fibra E, which debuted on the stock exchange in February 2018 with an initial public offering of MXN$16.4 billion, is the only financial vehicle with access to revenues generated by the Red Nacional de Transmisión, an asset owned exclusively by the Mexican state, Bloomberg Línea reported. Those revenue flows back the instrument's market placements at a time when the network faces saturation and a shortage of new infrastructure, according to the same outlet. The transmission network is the segment that carries electricity from power plants to homes and businesses, and its modernization determines how quickly new generation capacity can be brought online.
For the offering, CFE Capital, the company's financial arm, requested authorization from Mexico's Comisión Nacional Bancaria y de Valores for a follow-on public offering of Fibra E Series A certificates in Mexico, simultaneous with an international private placement, Bloomberg Línea reported. The company noted that the transaction immediately increases the trust's participation in the cash flows of the Fideicomiso Promovido, "generating returns from the point of investment, with no maturation or construction periods." Bank of America, Citi, and Santander are acting as global coordinators; Actinver and BBVA as Mexican placement agents; and BNP Paribas on the international offering. CFE has US$30 billion in committed investments, of which US$8.5 billion are earmarked for improving electrical networks, and is studying a second Fibra E backed by generation assets, potentially by 2027.
CFE made the offering contingent on obtaining the necessary regulatory and corporate approvals, as well as favorable market conditions, the company stated. The closing of the placement and the progress of the transmission projects it finances will mark the next milestone in this plan.
This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.