Comisión Federal de Electricidad in $1.5 Billion Sustainable Bond Offering

Cleary Gottlieb represented longtime client Comisión Federal de Electricidad (CFE), the Mexican state-owned electric company, in connection with its issuance of $1.5 billion aggregate principal amount of sustainable notes, comprised of $1 billion aggregate principal amount of 6.45% sustainable notes due 2035 and $500 million aggregate principal amount of 5.7% sustainable notes due 2030, both of which are guaranteed by certain of the company’s subsidiaries.

CFE intends to allocate an amount equal to the net proceeds of the offering to finance or refinance new or existing “eligible green projects” or “eligible social projects” under CFE’s sustainable financing framework.

The offering priced on September 17, 2024, and closed on September 24, 2024.

BBVA Securities, BofA Securities, Citigroup, HSBC, and Mizuho acted as global coordinators and joint bookrunning managers of the offering, while BNP Paribas, Santander, Scotiabank, and SMBC Nikko acted as joint book-running managers.

The notes are expected to be listed on the Luxembourg Stock Exchange.