CFE successfully carries out its first issuance of cebures with a social and green focus in the local market

• The resources will promote investment in renewable energy projects, energy efficiency, electro-mobility and ecological buildings, as well as provide basic electricity and internet services to the population of remote and rural communities.
• The operation obtained an excess demand of 2.5 times the target amount, which reflects the confidence of investors in the State Productive Company.
• The CFE is positioned as the first corporation to access 20-year term financing in the public debt market in Mexico.

On November 16, the Federal Electricity Commission (CFE) carried out a historic and successful placement of Stock Certificates (CEBURES) with a Social and Green focus for an amount of 10,000 million pesos (mdp), with the format of communicating vessels, the which had a total demand of 20,000 million pesos, which represents 2.0 times the contracted amount and 2.5 times the target amount (8,000 million pesos). The commitment established by the CFE before investors is to allocate a similar amount of resources to social and green projects, being its first issuance with an Environmental, Social and Governance (ESG) approach in the public debt market in Mexico.

The operation is made up of four tranches: one in a variable format, another in a nominal fixed rate and two in a rate format in UDIS. The first two have a Social approach to finance projects for access to free or subsidized basic services, among which the provision of internet and the supply of electricity to the population that still does not have such services stand out.

The sections with a Green focus will allow investment in renewable energy projects, energy efficiency, electro-mobility and ecological buildings, in accordance with the Reference Framework for Sustainable Financing of the State Productive Company (EPE), which is aligned with the Objectives of Sustainable Development of the United Nations Organization (UN), specifically with those listed: 7.- “Access to affordable and sustainable energy”; 9.- “Resilient and sustainable industry and infrastructure”, and 11.- “Sustainable cities and communities”, as well as the principles of green and social bonds and loans from different associations at an international level.

The distribution of the amounts in each tranche and the corresponding interest rate are indicated below:

• CFE 22S: with an amount of 2,908 million pesos at a variable rate (TIIE 28 days) plus 48 base points (bps) for a term of 3.5 years. The oversubscription was 2.36 times the contracted amount.
• CFE 22-2S: with an amount of 1,333 million pesos at a nominal fixed rate of 10.82% for a term of 8 years. The demand was greater by 2.89 times the contracted amount.
• CFE 22UV: with an amount of 2,459 million pesos at a real fixed rate of 6.30% at a term of 10.3 years, with an oversubscription of 1.28 times the indicated amount.
• CFE 222UV: with an amount of 3,300 million pesos at a real fixed rate of 6.72% with a term of 20 years and an excess demand of 1.86 times. With this tranche, the CFE becomes the first Corporate in the local market to access this term.

It should be noted that, despite the complex context of the national and international financial markets, the spreads reached in the four tranches were below the initial levels shared (IPTs) with the market and at more attractive levels than those registered in the latest issuances. comparable from the CFE, obtaining competitive interest rates in an adequate market window, as a result of better economic and inflationary data reported by different government entities.

It is important to highlight the solid confidence of investors in the future of the EPE with respect to other Corporates, which is demonstrated in the amount of the demand reached in the issuance (2.0x) as well as in the term of 20 years, being the first Corporate in the public local debt market that places a bond with

said period of time.

The issuance was executed after holding different virtual Roadshow meetings with more than 20 local and international investors, such as: Afores, Brokerage Firms, Treasuries, Investment Funds, Insurers, Private Banks, Development Banks, among others, in which The main current operating and financial results of the CFE were reported, as well as its Investment Program for the following years.

The issue has the highest investment grade rating on the AAA local scale, issued by the credit risk assessment agencies Moody’s and Fitch Ratings. The underwriters were BBVA, Banorte, Citibanamex and Santander; the latter bank acted as ESG structuring agent.

It is important to point out that this operation does not represent additional indebtedness for the CFE, since the resources obtained in this issue will be used to pay short-term debt. It will also make it possible to extend the maturity profile of the Company’s debt, as well as ratify its commitment to financial discipline. This is part of an operational and financial strategy that will allow, in the short and medium term, to improve financial results and optimize the use of its productive assets.

This historic placement reaffirms the CFE’s commitment to sustainable development and the social inclusion of less favored groups, making permanent efforts to preserve and protect the environment, as well as to provide access to essential services for the entire population, contributing to closing the digital gap between the different regions and supplying electricity to almost the entire population of the country. In addition, it is a clear sign of the confidence of investors in the CFE as a strategic company in the energy sector, essential for the economic, social and sustainable development of Mexico.