In December 2017, Comisión Federal de Electricidad, our parent company, made a public statement on its interest in creating Mexico’s first investment energy trust (locally known as Fibra) specialized in the country’s electricity sector. Fibra is an efficient and competitive investment vehicle that allows investments in infrastructure.
Fibras are operated through a trust that issues stock certificates. These certificates are publicly traded in the Mexican stock exchange (Bolsa Mexicana de Valores) and filed in the country’s Securities National Registry (Registro Nacional de Valores). Fibras are subjected to several disclosure, transparency, and corporate governance policies; and to be classified as a Fibra, they must comply with fiscal, accounting, and legal regulations.
Since 2018, CFECapital manages Mexico’s first energy and infrastructure investment trust specialized in the country’s energy sector (Fideicomiso CIB/2919 or CFE Fibra E, issue ticker symbol FCFE). On February 8, 2018, these tradeable trust certificates of investment in energy and infrastructure were issued. With the proceeds of this issuance, approximately 6.78% of the collection rights of the Productive Subsidiary Enterprise CFE Transmisión were acquired.
At a settlement price of MXN $19.00 per certificate, and after partial overallotment rights were exercised, MXN $16.21 billion were raised among institutional and private investors. This amount is equivalent to 75% of the total certificates. Additionally, CFE Transmisión retained the remaining 25% of the tradeable certificates amounting MXP $5.403 billion. As a whole, the offering comprehended 1,137,593,882 titles.
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Here is where you can track CFE Fibra E in different Internet financial sites:
The use of proceeds raised from CFE Fibra E is to modernize assets of the National Transmission Network (Red Nacional de Transmisión -RNT-). With this, we aim to contribute significantly to the development of the infrastructure of Mexico’s electric sector and to support the progress of the country’s securities market.
CFE Fibra E is a beneficial and reliable investment instrument, both for CFE and its investors. On one side, it will allow CFE to reach international efficiency and transparency standards in the execution of infrastructure projects and in its general functioning. On the other side, private as well as institutional investors will incur in an indirect risk exposure to the transmission of electricity business in Mexico. This business line, managed and operated by the Productive Subsidiary Enterprise CFE Transmisión, characterizes itself for being stable, profitable, and valuable for CFE.
CFE Transmisión was incorporated in 2016. Its purpose is to conduct the necessary operations and activities to provide the public service consisting in the transmission of electric power by installing, maintaining, expanding, and modernizing its infrastructure, as well as by obtaining its required financing. CFE Transmisión is, by constitutional law, the only company that can legally own the assets of the National Transmission Network (RNT) in the country.
Mexico’s main electricity transmission and subtransmission network (with power line voltages ranging from 400 to 69 kV) is of about 108,000 kilometers (66,500 miles) long. Said networks includes numerous substations and interconnections (some out of the country, with the United States of America and Central America), as determined by the country’s Energy Ministry (SENER). There are four electricity transmission systems conforming the RNT: three isolated (Baja California, Mulegé and Baja California Sur), and one interconnected: the National Interconnected System (SIN) that covers most of Mexico. CFE Transmisión exercises absolute ownership over the electricity transmission service and related assets in Mexico.