Mexico’s state utility Comision Federal de Electricidad (CFE) has raised MXN 20 billion (about US$1.2 billion) in the local debt market through a three-tranche issue of certificados bursatiles, which BNamericas reports as its largest ever local bond placement. Demand reached MXN 43.974 billion, 2.2 times the amount offered, with orders from pension funds (Afores), banks, insurers, investment funds, federal public agencies and development banks. Half of the proceeds will fund new photovoltaic, hydroelectric and combined-cycle gas plants; the other half will refinance short-term certificates and loans maturing in the fourth quarter of 2026.
The placement was split into three tranches. CFE 26X raised MXN 5 billion over three years at the TIIE funding rate plus 48 basis points and carries a sustainable label. CFE 26-2X raised MXN 5.55 billion over ten years at 10.36%, equivalent to the M Bono 2036 plus 110 basis points, also with a sustainable label. The largest tranche, CFE 26U, raised MXN 9.45 billion over 40 years at a real rate of 6.07%, or 130 basis points over the Udibono 2043, with linear principal repayments. Banorte, BBVA, Santander and Scotiabank led the deal, and all three tranches carry AAA national-scale ratings from Fitch Ratings, Moody’s Local Mexico and S&P Global Ratings.
CFE said the structure aligns debt repayments with the useful life of electricity infrastructure, reduces the concentration of maturities and strengthens risk management. The 40-year inflation-linked tranche matches the multi-decade horizon of generation and transmission assets, while the sustainable labels on the two shorter tranches tie proceeds to the utility’s clean energy pipeline.
The issue sits within a broader programme under which CFE intends to invest more than US$37.5 billion in generation, transmission and distribution between 2026 and 2030. According to Bloomberg Linea, more than half of that programme depends on private-sector financing, which places the local capital market alongside project-level partnerships as a core funding channel for the utility’s expansion.
Why does this matter?
A state utility raising 40-year inflation-linked money at home, 2.2 times covered, shows Mexican institutional investors will fund long-dated power assets. For developers and suppliers, it signals that CFE’s solar, hydro and combined-cycle build-out has the balance-sheet backing to move from plan to procurement.
What happens next?
CFE will use MXN 10 billion to retire short-term certificates and credits falling due in the fourth quarter of 2026, with the balance flowing to photovoltaic, hydroelectric and combined-cycle projects. Further issuance is likely as the utility works through its 2026 to 2030 programme, more than half of which still needs private capital.
Sources: El Financiero: CFE consigue 20 mil mdp: en que gastara el dinero y que proyectos electricos financiara; Bloomberg Linea: CFE emite deuda de MXN$20.000 millones por refinanciamiento y proyectos electricos; BNamericas: Mexico’s CFE taps local market for US$1.2bn to fund US$37.5bn power plan.