The International Finance Corporation (IFC), part of the World Bank Group, has announced a US$75 million investment in the inaugural bond issuance of CFE Fibra E, a financial trust supported by Mexico’s Federal Electricity Commission (CFE). This initiative aims to mobilize private capital to strengthen and expand the country’s electricity transmission infrastructure.
Structured under the Fibra E scheme, the bond represents an innovative alternative to direct financing by CFE. The transparent and well-governed structure is designed to attract both domestic and international institutional investors while ensuring strong protections for bondholders.
IFC’s investment is expected to improve electricity supply in strategic regions, reduce technical losses in the grid, facilitate renewable energy integration, and enhance the resilience of the system to extreme weather events. Cajeme Villarreal, CEO of CFE Capital, highlighted that IFC’s participation was crucial to achieving the energy justice and security objectives set by CFE for the current administration.
Cheryl Edleson, IFC Director for Infrastructure, Energy, and Mining for Europe, Latin America, and the Caribbean, emphasized that the project demonstrates how financial innovation can unlock investments in strategic sectors. The collaboration with CFE supports modernization of Mexico’s electric grid, with benefits including job creation, economic development, and sustainability.
This marks IFC’s first project with CFE and initiates a long-term strategic partnership to promote sustainable energy sector development. The US$725 million bond issuance attracted over US$6 billion in participation, reflecting strong market confidence in CFE’s 2030 transmission investment plan.
Through this investment, IFC reinforces its commitment to sustainable infrastructure in Mexico and promotes financial models that channel private resources into key sectors, supporting economic growth and the nation’s energy transition.
Related Posts
