Mexico Utility CFE Debuts ESG Bonds Amid Pollution Backlash
- Borrowed $1.75 billion in a two-part sustainability debt sale
- State-owned firm is under fire for burning polluting fuel oil
Workers clean photovoltaic panels at the Salsipuedes solar plant in Villa de Arista, Mexico, on Friday, Oct. 8. President Andres Manuel Lopez Obrador's plan to change the constitution to give control of the electricity market to state utility CFE would destroy Mexico's clean energy advances, according to a joint statement from the country’s wind and solar associations.
Photographer: Mauricio Palos/BloombergMexico’s state-owned utility sold $1.75 billion in sustainable bonds in foreign debt markets for the first time amid mounting criticism that it’s doing little to protect the environment.
Comision Federal de Electricidad tapped the U.S. investment-grade market with a benchmark two-part sustainability bond, according to a person with knowledge of the matter. The longest portion of the offering, a 30-year security, yields 4 percentage points more than comparable Treasuries, in line with initial price discussions, said the person, who asked not to be identified as the details are private. That would equate to about 6.25% based on Tuesday’s Treasury yields.