Comisión Federal De Electricidad (A Productive State Enterprise of the Federal Government of the United Mexican States) 4.750% Notes Due 2027
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LUXEMBOURG LISTING PROSPECTUS U.S.$ 1,000,000,000 Comisión Federal de Electricidad (a Productive State Enterprise of the Federal Government of the United Mexican States) 4.750% Notes due 2027 We made an offer of U.S.$ 1,000,000,000 aggregate principal amount of our 4.750% notes due 2027, which we refer to as the “notes.” The notes will mature on February 23, 2027. Interest on the notes began to accrue from October 18, 2016 and will be payable on February 23 and August 23 of each year, beginning on February 23, 2017. The notes rank without any preference among themselves and equally with all of our other unsecured and unsubordinated public external indebtedness. The Federal government of Mexico (the “Mexican government”) does not guarantee or secure our obligations and has no obligation to pay the principal or interest on the notes in the event that our cash flows and/or assets are not sufficient to make any such payments. The notes do not grant in any way rights over the ownership, control or assets of our company. We may redeem the notes, in whole or in part, at any time by paying the greater of 100% of the principal amount of the notes and the applicable “make-whole” premium amount, plus accrued interest to the redemption date. In the event of certain changes in the applicable rate of Mexican withholding tax, we may redeem the notes, in whole but not in part, at a price equal to 100% of their principal amount, plus accrued interest to the redemption date. In addition, upon the occurrence of certain fundamental changes in our ownership or business, we will be required to offer to purchase the notes at a price equal to 100% of their principal amount, plus accrued interest to the purchase date. See “Description of the Notes—Redemption and Purchase.” The notes contain provisions, commonly known as “collective action clauses.” Under these provisions, which differ from the terms of our public external indebtedness issued prior to June 16, 2015, we may amend the payment provisions of any series of debt securities issued under the indenture (including the notes) and other reserved matters listed in the indenture with the consent of the holders of: (1) with respect to a single series of debt securities, more than 75% of the aggregate principal amount of the outstanding debt securities of such series; (2) with respect to two or more series of debt securities, if certain “uniformly applicable” requirements are met, more than 75% of the aggregate principal amount of the outstanding debt securities of all series affected 2 by the proposed modification, taken in the aggregate; or (3) with respect to two or more series of debt securities, more than 66 /3% of the aggregate principal amount of the outstanding debt securities of all series affected by the proposed modification, taken in the aggregate, and more than 50% of the aggregate principal amount of the outstanding debt securities of each series affected by the proposed modification, taken individually. See “Description of the Notes— Meetings, Amendments and Waivers.” ______________________________________________________ Investing in the notes involves risks. See “Risk Factors” beginning on page 16. ______________________________________________________ ISSUE PRICE: 99.876%, PLUS ACCRUED INTEREST, IF ANY, FROM OCTOBER 18, 2016 _______________________________________________________ THE INFORMATION CONTAINED IN THIS LUXEMBOURG LISTING PROSPECTUS IS EXCLUSIVELY OUR RESPONSIBILITY AND HAS NOT BEEN REVIEWED OR AUTHORIZED BY THE COMISIÓN NACIONAL BANCARIA Y DE VALORES (MEXICAN BANKING AND SECURITIES COMMISSION, THE “CNBV”). THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE REGISTRO NACIONAL DE VALORES (MEXICAN NATIONAL SECURITIES REGISTRY) MAINTAINED BY THE CNBV AND THEREFORE THE NOTES MAY NOT BE PUBLICLY OFFERED OR SOLD NOR BE THE SUBJECT OF BROKERAGE ACTIVITIES IN MEXICO, EXCEPT THAT THE NOTES MAY BE OFFERED IN MEXICO TO INSTITUTIONAL AND QUALIFIED INVESTORS, PURSUANT TO THE PRIVATE PLACEMENT EXEMPTION SET FORTH IN ARTICLE 8 OF THE LEY DEL MERCADO DE VALORES (MEXICAN SECURITIES MARKET LAW). AS REQUIRED UNDER THE MEXICAN SECURITIES MARKET LAW, WE WILL NOTIFY THE CNBV OF THE OFFERING OF THE NOTES TO COMPLY WITH A STATUTORY REQUIREMENT AND FOR INFORMATION PURPOSES ONLY, AND THE RECEIPT OF SUCH NOTICE BY THE CNBV, DOES NOT IMPLY ANY CERTIFICATION AS TO THE INVESTMENT QUALITY OF THE NOTES, OUR SOLVENCY, LIQUIDITY OR CREDIT QUALITY OR THE ACCURACY OR COMPLETENESS OF THE INFORMATION SET FORTH HEREIN. THIS LUXEMBOURG LISTING PROSPECTUS MAY NOT BE PUBLICLY DISTRIBUTED IN MEXICO. Application has been made to list the notes on the Official List of the Luxembourg Stock Exchange and to trade them on the Euro MTF Market of such exchange. The Euro MTF Market of the Luxembourg Stock Exchange is not a regulated market for the purposes of the Law on Prospectuses for Securities or Directive 2003/71/EC. This Luxembourg Listing Prospectus can only be used for the purposes for which it has been published. This Luxembourg Listing Prospectus constitutes a prospectus for purposes of the Luxembourg law on prospectus securities dated July 10, 2005, as amended. The notes have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act’”), or the securities laws of any other jurisdiction, and are being offered only (1) to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act and (2) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. For certain restrictions on the transfer of the notes, see “Transfer Restrictions.” __________________________________________________ The initial purchasers delivered the notes to purchasers on October 18, 2016 in book-entry form through the facilities of The Depository Trust Company for the accounts of its direct and indirect participants, including Euroclear Bank S.A./N.V. and Clearstream Banking, société anonyme. ___________________________________________________ Joint Lead Managers and Joint Bookrunners BBVA BofA Merrill Lynch Citigroup October 24, 2016 TABLE OF CONTENTS Page Enforceability of Civil Liabilities ................................................................................................................................ iii Where You Can Find More Information ......................................................................................................................iv Mexican Energy Reform...............................................................................................................................................iv Presentation of Financial and Other Information ........................................................................................................... v Forward-Looking Statements .......................................................................................................................................vi Technical Terms Relating to the Electricity Industry ................................................................................................. vii Summary........................................................................................................................................................................ 1 Risk Factors ................................................................................................................................................................. 16 Use of Proceeds ........................................................................................................................................................... 25 Exchange Rates ........................................................................................................................................................... 26 Capitalization ............................................................................................................................................................... 27 Management’s Discussion and Analysis of Financial Condition and Results of Operations ...................................... 28 Comisión Federal de Electricidad ................................................................................................................................ 52 Management ................................................................................................................................................................ 78 Description of the Notes .............................................................................................................................................. 86 Taxation ..................................................................................................................................................................... 103 Form of Notes, Clearing and Settlement ................................................................................................................... 107 Transfer Restrictions .................................................................................................................................................. 110 Plan of Distribution ................................................................................................................................................... 112 Legal Matters ............................................................................................................................................................. 118 Independent Auditors ...............................................................................................................................................