Structured Financing of the Year: Lima Metro Line 2

Structured Financing of the Year: Lima Metro Line 2

Construction of the Lima Metro Line 2, a 27 km underground line aimed at easing congestion in Peru’s capital, ran into one delay after another after it was announced in 2012. The government could not secure rights of way and the technical plans for several of the stations failed to come in on time.

The delays resulted in the need for additional debt financing from the consortium of developers (ACS and FCC from Spain, Salini Impregilo and Hitachi Rail STS from Italy and Cosapi from Peru). In July 2019, with Goldman Sachs and JPMorgan running the books, the project raised $563 million through government-backed senior secured notes due in 2036.

Although the project itself may have experienced delays, investors gave a strong vote of confidence with an order book seven times oversubscribed. Investor demand was strong enough to allow the issuer to increase the deal by $25 million. The money was used to help refinance some of the original $1.15 billion in 2034 bonds that were sold in 2015 with a 5.875% coupon. The new bonds were sold at par with a 4.35% coupon.

Award accepted by: Matias Seghezzo, CFO

Structured Financing of the Year: Lima Metro Line 2

Date: August 2019

Size: US$ 563 million

Supporting Financial Institutions: Goldman Sachs; J.P. Morgan; Santander

Supporting Law Firms: Garrigues; Clifford Chance; Maples; Norton Rose Fulbright; Rodrigo Elias Medrano; Dentons

All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com