Peso Market's Power Bond
Mexico's electricity commission issues a bond backed by receivables from its corporate customers. The bond is the first unsecured asset-backed bond from a government entity.
Mexico's federal electricity commission, Comisión
Federal de Electricidad (CFE) became the first public sector
entity in Mexico to issue an unsecured asset-backed bond in the
local market on April 25. The $210 million, peso-denominated
certificados búrsatiles have a 279-day maturity and are
structured as a revolving purchase of assets. ING
(México) Casa de Bolsa structured, lead-managed and
placed the bond with 24 institutional investors in Mexico.
Eduardo Andrade, head of the Mexican Energy Association, says
the bond, "is an important advance in the government's efforts
to establish the peso market as a source of funds for
infrastructure projects. If we can finance projects with pesos,
Mexican projects will be less at risk from volatility in other
markets." The Ministry of Energy estimates that Mexico needs
70% more generation capacity by 2010 for a cost of $74
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