Introduction to CFE Capital and Fibra E
CFE Capital, led by its General Director Cajeme Villareal, recently raised $725 million through the issuance of a bond by Fibra E, its investment vehicle for energy and infrastructure projects. This is the first bond issued by Fibra E in the stock market, with a 15-year term.
Bond Offering Details and Investor Interest
Initially targeting $650 million, the bond offering attracted significant interest from 240 investors across 32 countries, totaling nearly $6.4 billion in demand. This interest reflects Mexico’s macroeconomic stability and clear public policies, as well as the strength of the Comisión Federal de Electricidad (CFE).
Project Focus in Mexico’s Northern Region
Villareal explained that most CFE projects are located in Mexico’s northern region due to the establishment of manufacturing and data centers. Some challenges, such as congestion and remote communities with limited access, need to be addressed.
Current Investment of Bond Funds
The funds from the first bond are already being allocated to nine projects, including:
- Compensatory capacitance in Tecate
- Compensatory capacitance in Tijuana
- Voltage improvement in southern Ensenada
- Compensatory capacitance in Los Viñedos substation in Hermosillo
- Capacity limitation removal from underground cables in Hermosillo, Obregón, Los Mochis, Culiacán, and Mazatlán
These projects aim to enhance electricity supply quality, reduce technical losses in the grid, facilitate renewable energy integration, and increase system resilience against extreme weather events.
IFC’s Involvement and Strategic Collaboration
Among the investors, the International Finance Corporation (IFC) stood out. As a member of the World Bank Group, IFC invested $75 million in this project. This investment aims to improve electricity supply quality, reduce technical losses, facilitate renewable energy integration, and increase system resilience against extreme weather events in strategic regions.
This marks the beginning of a long-term strategic collaboration between IFC and CFE.
Key Questions and Answers
- What is Fibra E? Fibra E is an investment vehicle by CFE Capital for energy and infrastructure projects.
- How much was raised through the bond issuance? $725 million was raised by issuing the bond.
- What are the primary regions for CFE’s projects? Most projects are located in Mexico’s northern region, where manufacturing and data centers are being established.
- What challenges are being addressed in these projects? Congestion, remote communities with limited access, and other issues are being tackled.
- Which investor played a significant role in this bond issuance? The International Finance Corporation (IFC) invested $75 million in this project, marking the start of a long-term collaboration with CFE.
