CFE Fibra E is a publicly traded investment vehicle on the Mexican Stock Exchange, managed by CFECAPITAL, S. de R.L. de C.V. (“CFE Capital”), an affiliate of the state-owned utility company CFE. The Issuer was established in 2018 to acquire a percentage of the economic beneficiary rights derived from the collection rights of the Promoted Trust. Upon issuance, the trust offered certificates in two series: (i) Series A certificates, allocated to private investors; and (ii) Series B certificates, allocated to CFE.        

The project involves an up to US$150 million investment in CFE Fibra E’s inaugural US$725 million bond issuance. The bond proceeds will be used to acquire from CFE additional economic beneficiary rights to distributions arising from the Promoted Trust. CFE will, in turn, use these funds to finance part of its grid modernization and expansion plan, which is crucial for meeting growing electricity demand and integrating renewable energy into the system. Proceeds from IFC’s investment will be ringfenced to a subset of investments in RNT infrastructure that have been screened under environmental and social (E&S) selection criteria. For further details, please refer to the Environmental and Social Review Summary (ESRS) linked to this project’s SII on the IFC’s project disclosure website. 

The proceeds from IFC’s bond subscription will be used to support priority investments in Mexico’s electricity transmission network that have been screened and deemed eligible under IFC’s environmental and social (E&S) criteria. For details on the eligibility criteria, please refer to the Environmental and Social Review Summary (ESRS) linked to this project’s SII on the IFC’s project disclosure website.

A subset of projects has been preliminarily screened and approved for investment under these criteria. From this group, specific projects will be selected for the use of IFC proceeds. These projects are located across Mexico, including the states of Baja California, Coahuila, Nuevo León, Chihuahua, Puebla, Morelos, Ciudad de México, Sonora, Tamaulipas, Durango, and Jalisco.                                                   

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012) given that the proposed use of IFC proceeds will have limited adverse ESHS impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures. IFC-financed subprojects must meet the ESHS eligibility criteria described above and all modernization and replacement works must be confined to existing footprints, ensuring minimal ESHS impact.

Key ESHS aspects associated with the eligible subprojects include, among other: CFE’s ESHS management and monitoring systems to assess and manage ESHS risks and impacts from IFC-financed activities; labor and working conditions and occupational health and safety (OHS) policies and practices for direct workers and contractors; monitoring and management of electro-magnetic fields (EMF), management of hazardous and non-hazardous waste and hazardous materials; emergency planning and response; and stakeholder engagement.