Metro de Bogotá aims to raise $800 million in private financing

Metro de Bogotá aims to raise $800 million in private financing

Bonds Project & Infrastructure Finance Colombia

Metro de Bogotá expects to secure $800 million in private financing in the first quarter, a source close to the deal has told LatinFinance.

“Several banks and strategic investors are currently working on proposals,” the source said.

Metro de Bogotá could tap the bond market, but is also weighing the option of raising capital through loans, a second source said.

The Colombian government voted in May to provide federal backing for up to COP7.8bn ($2.7bn) in financing for Empresa Metro de Bogotá, which will oversee construction of a long-awaited subway system in Colombia's capital city. The IDB and World Bank have said they will provide up to $1.2bn in financing, contributing $600m each 

Building the subway line is expected to cost COP15.2tn, but the overall project costs could rise to COP22tn when availability payments over 30 years are included in the tally, according to the Bogota mayor's office.