CFE sells US$230mn in 2nd bond issue

BankBoston sold 2.6bn Mexican pesos (US$230mn) in 10-year stock market certificates to 26 bidders last week on behalf of Mexico's state power company CFE, the latter said in a statement. Purchase offers totaled 5.1bn pesos from 41 separate bids. Successful bidders included pension fund managers (Afores) as well as insurance and finance companies. Funds will support CFE's public works program, especially construction of transmission lines and substations scheduled for completion this year, the CFE said. Based on investor confidence, certificates for the second issue carried 13 basis points less than the first issue in October, CFE said. The 10-year papers issued last month paid interest twice yearly at a floating rate equivalent to the 182-day federal treasury rate (Cetes) plus 0.85%. Each 182-day period will amortize 130mn pesos in capital plus interest.