Comisión Federal de Electricidad’s $1.025 Million Notes Offering

Cleary Gottlieb Steen & Hamilton, Lee and Li, Simpson Thacher & Bartlett and Ritch, Mueller, Heather y Nicolau advised on the transaction

Comisión Federal de Electricidad (CFE), the Mexican state-owned electric company finalized two debt transactions.

CFE’s $750 million offering of its 5.15 percent notes due 2047 listed in the Taipei Exchange, which closed on July 13, 2017. HSBC Taiwan and E. SUN Bank acted as managers, and Credit Suisse and Morgan Stanley acted as structuring agents. CFE is the first Mexican issuer to access Taiwan’s Formosa bond market. The proceeds from this offering will be used to finance electric infrastructure projects in Mexico.

CFE’s Ps. 4.8 billion ($275 million) offering of its 8.18 percent Euroclearable Cebures due 2027, which closed on July 6, 2017. BBVA and Santander acted as placement agents. This offering is part of a strategy by the Mexican government to expand Mexico’s corporate debt market by placing peso-denominated debt with international investors. The proceeds will be used for general corporate purposes.

Cleary Gottlieb Steen & Hamilton advised Comisión Federal de Electricidad with a team including Jorge Juantorena (Picture), Erika Nijenhuis, Grant Binder, Juan Mollis, Julián Cardona, Elisa Sielski and Miguel Álvarez.

Lee and Li advised Comisión Federal de Electricidad with Patricia Lin.

Simpson Thacher & Bartlett advised HSBC Taiwan, E. SUN Bank, Credit Suisse and Morgan Stanley with Juan Méndez, Kirsten Davis, Luis Pellerano, Francisco Zappa and Ernesto Sanz.

In Mexico, Ritch, Mueller, Heather y Nicolau advised HSBC Taiwan, E. SUN Bank, Credit Suisse and Morgan Stanley with Luis Nicolau, Oscar A. López Velarde, Héctor Cárdenas and Santiago Díaz Rivera.

 

Involved fees earner: Patricia Lin – Lee and Li; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Héctor Cárdenas Ortega – Ritch, Mueller, Heather y Nicolau, SC; Oscar López Velarde – Ritch, Mueller, Heather y Nicolau, SC; Santiago Díaz Rivera Bravo – Ritch, Mueller, Heather y Nicolau, SC; Juan Francisco Mendez – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; Luis Rafael Pellerano – Simpson Thacher & Bartlett; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Grant M. Binder – Cleary Gottlieb Steen & Hamilton; Juan Ignacio Mollis – Cleary Gottlieb Steen & Hamilton; Miguel Alvarez Malvido – Cleary Gottlieb Steen & Hamilton; Erika Nijenhuis – Cleary Gottlieb Steen & Hamilton; Julian Cardona – Cleary Gottlieb Steen & Hamilton;

Law Firms: Lee and Li; Ritch, Mueller, Heather y Nicolau, SC; Simpson Thacher & Bartlett; Cleary Gottlieb Steen & Hamilton;

Clients: Credit Suisse; Morgan Stanley; Comisión Federal de Electricidad (Mexico); HSBC Taiwan; E.SUN Commercial Bank, Ltd.;