BBVA leads Xignux’s return to the debt market with a successful MXN7 billion issuance of notes

BBVA drives Xignux's return to the debt market by successfully achieving a MXN 7 billion issuance of notes, strengthening its financial position.

Xignux, a leading supplier of energy and food solutions, made a triumphant return to the local debt market with the placement of long-term notes totaling MXN7 billion, the proceeds of which will be used to roll over existing liabilities. The transaction, led by BBVA, was met with enthusiasm by investors, with demand totaling MXN19.47 billion, a bid-to cover ratio of 2.8 times—the highest reported for corporate issuer in the year to date.

Xignux’s return to the market did not go unnoticed. The company, which has become one of the main players in electrical energy transformation and delivery both in Mexico and the United States, boasts a solid credit profile, backed by triple-A ratings from Moody’s Local and HR Ratings. The issue was structured into two tranches:

• Xignux 24: Floating-rate notes pegged to the 28-day TIIE with a term of 3.5 years.  MXN750 million with a spread of 29bp over the benchmark.

• Xignux 24-2: Fixed-rate notes referenced to the MBono 36, with a term of 12 years and a spread of 122bp over the benchmark, which comes to a rate of 10.95%

The placement attracted a wide range of investors, among them Afores, insurance firms mutual funds, treasuries and brokerage firms, attesting to the financial solidity and leadership Xignux has in its key areas of business.

Founded in 1956, Xignux has become a leader in the energy and food industries. With 68 years of experience, the company has a commercial presence in more than 35 countries and has developed a solid presence in international markets, particularly in the United States and Latin America. In addition, the company has focused on innovation and sustainability, strengthening its leadership in the development of products for energy transformation, which has made it a strategic partner for high-growth industrial sectors such as automotive and telecommunications.

The company continues to move forward with a strategy of sustained growth, supported by robust financial performance and steady improvements in operating margins. The recent debt issuance reaffirms the market's confidence in Xignux, both in its ability to meet its financial commitments and in its potential to continue leading the energy transformation in the markets in which it operates.

With this successful placement, BBVA reaffirms its role as a key player in structuring financial solutions that drive the development of high-impact Mexican companies, connecting issuers with the market's appetite for well-backed debt instruments with solid growth prospects.