#Mexico #Mexico City #Cash Tender #CFE #Sustainable Notes

CFE Launches Cash Tender Offer

The Commission Federal de Electricidad (CFE), Mexico's state-owned power utility, has recently announced the initiation of a cash tender offer for its outstanding bond notes. This strategic move is designed to enhance its debt management and engage with investors through potentially lucrative terms.

Key Details of the Offer

On January 22, 2026, CFE disclosed plans to acquire its three series of notes:

• - 4.688% Sustainable Notes due 2029
• - 6.125% Notes due 2045
• - 6.264% Sustainable Notes due 2052

The company is willing to spend up to $500 million in cash for these notes, with the intention of improving its capital structure. The offer comes with certain conditions, including acceptance priority procedures and potential proration, which will ensure a fair allocation among tendering investors.

Financial Terms

The offer includes an Early Tender Premium of $50 for notes tendered before the specified date and an advantageous Late Tender Consideration for later tenders. The precise terms for the notes will be determined by prevailing market conditions at the calculation date, ensuring that investors benefit from attractive pricing strategies.

Important Dates to Remember

• - Early Tender Date: February 4, 2026, at 5 p.m. (New York City time)
• - Expiration Date: February 20, 2026, at 5 p.m. (New York City time)

Investors are encouraged to take note of these dates to optimize their returns under the tender offer conditions.

Advantages to Investors

By participating in this offering, bondholders can not only lock in competitive bid prices for their notes but also benefit from accrued interest in addition to the tender consideration. CFE has pledged additional interest payments to help cover any applicable taxes on these transactions, promoting further investment attractiveness.

CFE’s Strategic Goals

This tender offer aligns with CFE's broader financial strategy, aiming to strengthen its liquidity position while also enhancing its sustainability efforts through a focus on sustainable finance options. The initiative marks a significant developmental step in CFE's commitment to responsible public financial management.

Conclusion

CFE's cash tender offer provides an appealing opportunity for investors seeking to engage with a significant state-owned entity in the Mexican market. By leveraging the offered premiums and favorable terms, investors are urged to participate within the stipulated timelines to maximize benefits from their holdings. The offer reflects CFE's proactive approach to meet financial obligations while fostering stronger corporate governance practices.