Comisión Federal de Electricidad in Inaugural $1.75 Billion Sustainable Bonds Offering

Cleary Gottlieb represented longtime client Comisión Federal de Electricidad (CFE), the Mexican state-owned electric company, in the issuance of $1.25 billion aggregate principal amount of 4.688% sustainable notes due 2029 and $500 million aggregate principal amount of 6.264% sustainable notes due 2052, both of which are guaranteed by certain of the company’s subsidiaries.

The transaction is CFE’s inaugural sustainable bond offering in the international capital markets. CFE intends to allocate an amount equal to the net proceeds of the offering to finance or refinance, in whole or in part, new or existing “eligible green projects” or “eligible social projects” under CFE’s sustainable framework.

The offering priced on February 8, 2022, and is expected to close on February 15, 2022.

BofA Securities, HSBC, J.P. Morgan, and Santander acted as global coordinators and joint bookrunning managers for the offering, and Barclays, Scotiabank, and SMBC Nikko acted as joint bookrunning managers.

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