CFE in $100 Million Credit Facility
January 6, 2023
January 6, 2023
Cleary Gottlieb represented long-time client Comisión Federal de Electricidad (CFE), the Mexican state-owned electric company, in a $100 million credit facility to a CFE-sponsored special purpose trust that intends to use the proceeds to invest in renewable energy projects in Mexico.
J.P. Morgan acted as administrative agent, lead arranger, and bookrunner and lender. CFE acted as co-obligor, and each productive subsidiary enterprise of CFE will guarantee CFE’s obligations as co-obligor under the facility.
The facility was signed on December 20, 2022, the initial borrowing for $50 million was funded on December 27, 2022, and a second borrowing is expected to be funded in early January 2023.
CFE is a decentralized public entity of the Mexican federal government that generates and distributes electricity throughout Mexico. CFE generates over 90% of the electricity consumed in Mexico and, under Mexican law, CFE has the exclusive right to transmit and distribute electricity in Mexico.