ESENTIA Achieves Major Milestone with $2 Billion Bond Offering and Triple Ratings

ESENTIA's Landmark $2 Billion Bond Offering

On May 21, 2026, ESENTIA Energy Development, S.A.B. de C.V. (BMV: ESENTIA) announced a significant achievement in their corporate history with the successful settlement of a $2 billion bond offering. This offering consisted of two tranches: $1.0 billion in 6.125% notes due in 2033, and $1.0 billion in 6.500% notes maturing in 2038, with both having bullet maturities. The demand for these securities was remarkable, with the offering being oversubscribed by approximately 4.5 times.

The proceeds from this monumental transaction were directed towards the complete repayment of about $2.1 billion in existing project-level debt across four operating subsidiaries. This strategic move is expected to consolidate years of complex asset development into a streamlined corporate capital structure, enhancing ESENTIA's financial flexibility.

In addition to the bond offering, ESENTIA also established a $600 million committed revolving credit facility, which is set to bolster the company's liquidity and financial position significantly.

A Turning Point for ESENTIA

The conclusion of this bond offering represents a pivotal turning point in ESENTIA's corporate evolution, allowing the company to retire its project finance debt completely. This restructuring not only simplifies the financial architecture of the company but also aligns it with its long-term growth aspirations. With no principal amortization requirements, freed-up restricted cash, and a favorable covenant framework, ESENTIA is well-poised to seize both organic and inorganic growth opportunities in a competitive market.

CEO Daniel Bustos remarked, "This is a defining moment for ESENTIA. The refinancing of all our project finance debt and its replacement with investment-grade corporate bonds complete a profound restructuring of ESENTIA’s capital structure, which started last November with our successful IPO. The global energy markets are witnessing an unprecedented demand driven by AI-related activities, and Mexico is no exception. We believe our company is uniquely positioned to leverage this growth."

The CFO, Stephen Griffiths, also highlighted the overwhelming demand for the bonds, stating, "The 4.5 times oversubscription indicates the global investment community's confidence in ESENTIA's creditworthiness and financial discipline. The extended maturities of our seven- and twelve-year tranches enable us with the runway needed for our Expansion Plan and long-term strategy."

Investment-Grade Ratings from Reputable Agencies

One of the most commendable outcomes of this bond offering was the investment-grade ratings received from all three leading global rating agencies: Moody's, S&P Global, and Fitch Ratings. Each assigned a rating of Baa3 and BBB– respectively, with a stable outlook. These ratings exhibit the company’s predictable cash flow profile backed by long-term, dollar-denominated take-or-pay contracts. Notably, ESENTIA plays a vital role in Mexico’s energy landscape, supplying around 16% of the nation’s daily natural gas demand.

It's important to note that the ratings are not recommendations for buying, selling, or holding securities and can be subject to revision at any time.

Transaction Execution and Future Outlook

The successful execution of this bond offering was a collaborative effort led by ESENTIA's Finance and Legal teams, working closely with joint bookrunners BofA Securities Inc., Citigroup Global Markets Inc., and ING Financial Markets Inc. The legal representation included Davis Polk Wardwell LLP and Galicia Abogados, along with Milbank LLP and Ritch, Mueller y Nicolau, S.C. who were legal counsels to the underwriters.

ESENTIA Energy Development, S.A.B. de C.V. is known as Mexico's largest privately-owned natural gas pipeline operator, featuring the Wahalajara system — an extensive and interconnected pipeline network stretching about 2,000 km. This network connects the Waha Hub in West Texas to critical industrial and power generation centers throughout Central-Western Mexico, ensuring a robust infrastructure for energy delivery.

The successful bond offering and the subsequent establishment of an investment-grade status mark a promising future for ESENTIA as it solidifies its position within the energy sector in Latin America. With a firm foundation set in place, the company is now better equipped to tackle the challenges of the ever-evolving global energy market while pursuing sustainable growth.

As ESENTIA moves forward from this pivotal moment, it aims to build upon these successes and continue to deliver value to stakeholders, ensuring that it remains at the forefront of energy solutions in the region.