CFE carried out the Initial Public Offering of Trust Stock Certificates for Investment in Energy and Infrastructure for priority projects investment in the electricity sector.

In February 2018, the CFE made the Initial Public Offer of 1,137,593,882 certificates to acquire 6.78% of collection rights from the public electric energy transmission service.

CFE FIBRA E is the only vehicle that allows private investors to obtain returns from the transmission sector.

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How does CFE FIBRA E Work?

How does CFE FIBRA E Work?

The CFE FIBRA E is based on the stream monetization futures (collection rights associated with the transmission business) and does not contemplate the transfer of any type of physical asset.

The transfer of the flows associated with the transmission business to the Promoted Trust has a finite term of 30 years; In the year 2048, the CFE will recover the 100% of the collection rights.

The CFE remains at all times the sole and legitimate owner of the National Transmission Grid and the only operator and provider of public electricity transmission service in Mexico.

The initial public offering represented 6,78% of the trustee rights of the Promoted Trust (transmission business flows).

The remaining 93,22% of the trustee rights of the Promoted Trust belongs to CFE Transmisiones.

How does CFE FIBRA E Work?

Select a number to display the main functions of each of the elements

CFE Transmission's income comes from the payment of a regulated rate determined by the Energy Regulatory Commission (CRE); This payment is made by market participants, for the electrical energy transported through the National Transmission Grid (RNG). It is collected by CENACE and deposited in the Promoted Trust on a weekly basis.

2

The National Energy Control Center (CENACE) is a decentralized public body of the Mexican Federal Government that operates the Wholesale Electricity Market (MEM) that manages the transmission and distribution services of the electricity market. It is responsible for billing and collecting payments to which CFE Transmission is entitled to receive for the provision of the transmission service.

1
Promoted Trust
3

The Promoted Trust receives the collection rights income under the CENACE Agreement and carries out the following activities:
· Reimburses the costs and expenses of CFE Transmission for the public electricity transmission service.
· Distributed to the Trustors (CFE Transmission and CFE Fibra E).

Distributions
- CFE Transmission: 93.22%
- CFE FIBRA E: 6.78%
5

The Promoted Trust makes the corresponding distributions to CFE Transmission and CFE FIBRA E, in accordance with the transferred percentage of the Trust Rights. CFE Transmission has 93.22% and CFE FIBRA E has 6.78% of the Trustee Rights.

CFE FIBRA E
6

The CFE FIBRA E also known as the Issuing Trust CIB/2919, on February 8ᵀᴴ, 2018, acquired 6.78% of the Trustee Rights of the Promoted Trust related to the public service of electric energy transmission at a placement price of $19 Mexican pesos per certificate for a total of $16,210 million pesos.

Administrator
7

CFECapital, an affiliate company of the CFE, is the administrator of the CIB/2919 Issuing Trust or CFE FIBRA E.

4

The Promoted Trust F/80758 delivers to CFE Transmission the resources to cover the different costs and expenses incurred to maintain the public electric energy service related to the transmission business in accordance with the Annual Budget, in the terms established in the Promoted Trust Contract.

Reimbursement of Costs and Expenses
Certificate Holders
8

The source of payment to the Holders of the Series “A” and Series “B” CBFEs will be the amounts obtained by the CFE FIBRA E from 6.78% of the Trustee Rights of the Promoted Trust.

Owner of 100% of the NTG assets and sole operator and provider of the public electricity transmission service in Mexico.

9

The Series “A” of Trust Certificates for Investment in Energy and Infrastructure (CBFEs) make up the 75% of the certificates (853,195,411) and are listed on the Mexican Stock Exchange.

SERIES "A"
75%
Private Investors
SERIES "B"
25%
10

The Series “B” of Trust Stock Certificates for Investment in Energy and Infrastructure make up the 25% of the certificates (284,398,471) and are property of CFE and CFE Transmission.
The CBFEs of Series “B” are subordinated to Series “A”, that is, in the distributions, first the Minimum Quarterly Distribution (MQD) of $0.5750 Mexican pesos will be distributed to the holders of CBFEs Series “A”, later the MQD will be distributed to the Holders of Series “B” CBFEs and the surplus will be distributed to the Holders of Series “A” and Series “B” CBFEs on a pro rata basis.

Learn about the CENACE Agreement in favor of the Promoted Trust

Diagram Diagram
Source: CFE FIBRA E Placement Prospectus.

What does it mean to invest in CFE FIBRA E?

To invest in the Mexican electricity sector, which, due to its generation capacity, is in 13ᵀᴴ place within the top 15 in the world.

To participate in CFE strengthening as a strategic company in the Mexican energy sector, being the largest in America due to its installed capacity and the value of its assets.

To have exposure to a defensive and resilient sector with a positive prospective due to the global phenomenon of Nearshoring.

To acquire the right to receive revenues from the electric energy transmission service, which is operated exclusively by CFE.

Our History

1937

August 14ᵀᴴ, 1937

The Federal Electricity Commission was created by presidential decree. And in 1949, it was converted by the Congress of the Union into a decentralized public organization of the Federal Government.

1960

September 27ᵀᴴ, 1960

President Adolfo López Mateos increased the level of electrification and nationalized the electricity industry in order to generate, conduct and supply energy with the goal to achieve the Mexico's energy independence.

2013

December 20ᵀᴴ, 2013

The decree is promulgated by which articles 25, 27 and 28 of the Constitution on energy matters are reformed and added. These reforms established that the planning and control of the National Electrical System, as well as the transmission and distribution of electricity, will be carried out by the Nation. CFE becomes a State Productive Company.

2016

March 29ᵀᴴ, 2016

CFE Transmission is established as a Subsidiary Productive Company of the CFE, whose purpose is to carry out the necessary activities to provide the public electric energy transmission service.

2017

December 7ᵀᴴ, 2017

Creation of the affiliate company CFECapital as a Limited Liability Company with Variable Capital, legally constituted and existing in accordance with the laws of Mexico, established by the Federal Electricity Commission.

2018

January 22ᴺᴰ, 2018

The CFE FIBRA E was created in Mexico City through the execution of the Irrevocable Trust Contract number CIB/2919

•CFECapital as Trustor and Administrator.
•CIBanco, S.A; Multiple Banking Institution as Trustee.
•Monex Casa de Bolsa S.A. de C.V. Monex Grupo Financiero, as Common Representative of the Holders.

2018

February 7ᵀᴴ, 2018

The Issuing Trust and CFE Transmission enter into a contract for the assignment of trust rights, by which CFE Transmission transferred 6.78% of the Trustee Rights to the CFE FIBRA E.

2018

February 8ᵀᴴ, 2018

The CFE carries out the Initial Public Offer, by which it issued the Trust Stock Certificates for Investment in Energy and Infrastructure at a placement price of $19 Mexican pesos for a total of $16,210 million pesos for investment in energy infrastructure projects.

1937

August 14ᵀᴴ, 1937

Federal Electricity Commission was created by presidential decree. And in 1949, it was converted by the Congress of the Union into a decentralized public organization of the Mexican Federal Government.

1960

September 27ᵀᴴ, 1960

President Adolfo López Mateos increased the level of electrification and nationalized the electricity industry in order to generate, conduct and supply energy with the goal to achieve the Mexico's energy independence.

2013

December 20ᵀᴴ, 2013

The Federal Mexican Government enacted the energy reform, in which they modified and added the articles 25, 17 and 28 of the Mexican Constitution. These changes established that the planning and operation of the National Electrical System, as well as the tranmission and distribution activities will be conducted by the Nation. PEMEX and CFE became State Productive Companies and private companies can participate in generation activities.

2016

March 29ᵀᴴ, 2016

CFE Transmission was established as a Subsidiary Productive Company of CFE, it's purpose is to carry out the necessary activities to provide the public electric energy transmission service.

2017

December 7ᵀᴴ, 2017

The affiliate CFECapital was created as a Variable Capital Limited Liability Company, legally created and existing in accordance with the laws of Mexico, constituted by the Federal Electricity Commission.

2018

January 22ᴺᴰ, 2018

• CFE FIBRA E was created in Mexico City by the Irrevocable Trust Agreement number CIB/2919.

• CFECapital S. de R.L. de C.V. Trustor and Administrator.
• CIBanco S.A., Multiple Banking Institution as Trustee.
• Monex Casa de Bolsa S.A. de C.V. Monex Grupo Financiero, as Common Representative of the Holders.

2018

February 7ᵀᴴ, 2018

The Issuing Trust and CFE Transmission signed a contract for the assignment of Trust Rights, by which CFE Transmission transferred 6.78% of the Trust Rights to CFE FIBRA E.

2018

February 8ᵀᴴ, 2018

CFE carried out the Initial Public Offer, by which it issued the Trust Stock Certificates for Investment in Energy and Infrastructure at a placement price of $19 Mexican pesos for a total of $16,210 million pesos. These proceeds were for investment in energy infrastructure projects.

2017

Creation of the subsidiary CFECapital.

2018

The Issuing Trust was created in Mexico City on January 22, 2018 through the execution of the Irrevocable Trust Agreement number CIB/2919 by the Administrator, CIBanco, SA, Institución de Banca Múltiple, as Trustee, and the Common Representative of the Holders, Monex Casa de Bolsa, SA de CV de CV, Monex Grupo Financiero.

2018

On February 7, 2018, the Issuing Trust and CFE Transmisiones entered into a contract for the transfer of fideicommissary rights by virtue of which CFE Transmission assigned to the Issuing Trustee 6,85% of the fideicommissary rights of the Promoted Trust, free of any lien or other limitation of ownership. , including without limitation, the right to receive the same 6.85% of Collection Rights under the CENACE Agreement.

2018

On February 8, 2018, the Issuing Trust carried out the Global Offer, by virtue of which it issued the CBFEs at the Placement Price, for a total of $16,210.7 million pesos (mp).

2018

On February 23, 2018, the underwriters partially exercised the over-allotment option.

2020

The CFE FIBRA E proves to be a resilient instrument in the face of the impact of the pandemic and confinement measures.

2023

5th anniversary of the CFE FIBRA E.

For more information, consult the CFE FIBRA E Placement Prospectus

The regulated tariffs of the public electric energy transmission service are defined by the Energy Regulatory Commission (CRE) on an annual basis in accordance with the information provided (Audited Financial Statements) by CFE Transmission and energy projections provided by the National Energy Control Center (CENACE).

‍

CRE, through the Resolution A/044/2022, defined the Methodology for the Calculation and Adjustment of regulated transmission tariffs, as well as the process to carry out the calculation, approval, notification and publication of the public electrical energy transmission tariffs.

‍

The General Administrative Provisions define the processes and mechanisms for each one of the stages and activities carried out by the Carrier (CFE Transmission) and the Regulator (CRE) for the determination of the regulated tariffs of the public electrical energy transmission service.

Submition of Regulatory Information

1
  • CFE Transmission must comply with the criteria for the integration and presentation of Regulatory Information.

‍

  • CFE Transmission must submit the Regulatory Information to CRE no later than the last business day of August of each year.

‍

  • The Regulatory Information must be accompanied by supporting documentation and the corresponding explanation for any change.

Request for Information

2
  • CRE may request clarifications, modifications or additional requirements to CFE Transmission.

‍

  • CFE Transmission will have a period of 10 business days to respond to CRE request.

‍

  • The Regulatory Information reviewed and verified by the Commission will constitute the basis for the calculation of the Transmission Tariff.

Review and Verification of Information

3

CRE will review:

‍

  • The appropiate application of the criteria for integration and presentation of information.

‍

  • The flexibility, consistency and comparability of the information.

‍

  • Verification of information based on regulatory documentation.

Sanctions

4
  • In the case that CFE Transmission does not present the Regulatory Information to CRE, sanctions may be applied.
Source: Energy Regulatory Commission, Annex to Resolution A/044/2022.

The general formula for calculating transmission tariffs considers the Required Income divided by the total energy transported through the National Transmission Network.

Transmission Tariff ₜ
=
Required Income
Energy

Required Income

The Required Income (RI) is the estimated income to recover operation, maintenance, financing and depreciation costs, technical and non-technical losses, taxes, investments and a reasonable profitability.

RIₜ₀ = (OMAₜ₀ + Keₜ₀ + RInvₜ₀ + Cₜ₀ - OIₜ₀) *AFₜ
OMAₜ₀

OMA Cost

Costs generated by the operation, maintenance, administration and other costs incurred by the Carrier for the provision of the Public Electrical Energy Transmission Service.

Keₜ₀

Cost of Capital

Return on assets of the Carrier and its depreciation, as well as the loss in disposals of fixed assets and the financial cost incurred for the provision of the Public Electrical Energy Transmission Service.

RInvₜ₀

Return on Investments

Return and depreciation annual of the assets of the new investments.

Cₜ₀

Cost for Associations and Contracts

Considerations by associations and private contracts what refers to the Electrical Industry Law.

OIₜ₀

Other Income

Carrier Income different to those obtained by the provision of Public Electricity Transmission Service.

AFₜ

Adjustment Factors

Updates the value of the variables used in the Methodology and is made up of the annual variation of the Exchange Rate and the National Producer Price Index (INPP).

Notes: ₜ₀ Base Year. Period of time that includes from January 1ˢᵗ to December 31ˢᵗ of the last information available regarding the year of application of the Electric Energy Transmission Rates.
ₜ Year of application of the Electrical Energy Transmission Rates.

Source: Agreement A/044/2022 of the Energy Regulatory Commission.
Formula Formula

Energy

The Regulated Tariffs of the Public Electrical Energy Transmission Service are calculated using the energy projections determined by the Energy Regulatory Commission based on CENACE projections.

Energy Regulatory Commission (CRE) Resolutions

Consult

Investors
Resources

Consult

How to invest in CFE FIBRA E?

01

Open an account with a stock intermediary and/or brokerage house of your choice

02

Seek advice from your brokerage firm to begin the process of buying and selling Trust Certificates for Investment in Energy and Infrastructure

03

Find us with the ticker code FCFE18 and acquire your certificates

Frequently Asked Questions

How can I invest in the CFE FIBRA E?

To invest in the CFE FIBRA E there is no specific requirement and since it is an instrument that is listed on the Mexican Stock Exchange, the process is through a bank or brokerage house through an intermediation contract, or, in one of the online investment platforms. The ticker code of the instrument is FCFE18.

Where are the CFE FIBRA E CBFEs listed?

Since 2018, the CBFEs of CFE FIBRA E have been listed on the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA), under the ticker code “FCFE18”.

What is CFE FIBRA E?

It is a Mexican energy and infrastructure investment trust or FIBRA E, established by the CFE, whose main objective is to make investments in Eligible Entities. It is managed by the CFE subsidiary, CFECapital, S. de R.L. de C.V., as Trustor and Administrator; CIBanco, SA, Multiple Banking Institution as Trustee; and Monex Casa de Bolsa, SA de CV, Monex Grupo Financiero, as Common Representative of the Holders.

Do you want to learn more?

Check out the resources we have for you on our HELP CENTER PAGE.

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