Cleary counsels CFE on $100m credit facility
Cleary Gottlieb has counselled the Comisión Federal de Electricidad (CFE), Mexico’s state-owned electric utility, on a $100 million credit facility to a CFE-sponsored special purpose trust that intends to use the funds to invest in renewable energy projects in Mexico.
J.P. Morgan acted as administrative agent, lead arranger, bookrunner and lender. CFE acted as co-obligor and each productive enterprise subsidiary of CFE will guarantee CFE’s obligations as co-obligor under the facility.
The facility was signed on 20 December 2022, the initial $50 million loan was funded on 27 December 2022 and a second loan is expected to be funded in early January 2023.
CFE is a decentralised public entity of the Mexican federal government that generates and distributes electricity throughout Mexico. CFE generates more than 90% of the electricity consumed in Mexico and, under Mexican law, CFE has the exclusive right to transmit and distribute electricity in Mexico.
Cleary’s team consisted of partners Manuel Silva (pictured right) and Jorge Juantorena (pictured left), associate Linda Zang and international counsel Alejandro Guajardo. All lawyers are based in New York.
