CFE taps active domestic bond market
Mexico’s local DCM remains open for business. A deal from CFE could be followed by other blue chips.
Mexico’s domestic bond market
remains a useful option for the country’s
higher-rated issuers, as well as smaller borrowers looking to
offer securitizations. Wednesday saw a 10 billion peso ($768
million) transaction from the Comisión Federal de
Electricidad (CFE) The state-owned utility
sold new 10-year bonds and retapped five-year floating rate
Broadcaster Televisa has also been
marketing a 10 billion peso transaction, targeting 10 and
15-year notes. América Móvil has indicated that
it intends to return to its quarterly retaps of the titulos
de credito extranjeros global peso securities, and
has been evaluating the markets for a deal this month.
Food products maker Herdez joined the CFE
raising 3 billion pesos.
In the bank space, HSBC Mexico plans to
up to 5 billion, what would be the bank’s
first domestic bond in four years. It would follow am
11 billion peso bond from Carlos Slim’s Banco
Inbursa last week.
Fibra Uno is preparing to issue the first
local bond from a Fibra real estate trust. The fund
could offer as much as 18 billion pesos.
Vitro also was preparing a return
to raise 1.2 billion pesos. The three-year floating-rate
deal backed by accounts receivables would be the
glassmaker’s first local bond since before its
It would follow a 550 million peso
Arrendadora y Soluciones de Negocio Wednesday, backed by
Elsewhere in the ABS space, the government
of Mexico’s Distrito Federal is preparing to issue
up to 3 billion pesos of
bonds backed by future revenues passed down from
Mexico’s federal government. Lender Consubanco is
1 billion deal backed by payroll loans.
Mexican issuers have raised $14.08
billion-equivalent in the domestic market through Wednesday,
according to Dealogic and LatinFinance data. This is
up from $11.55 billion-equivalent in the corresponding period