Refinancing of USD4.5bn subway project in Peru

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Refinancing of USD4.5bn subway project in Peru

ACS Group, through its subsidiary Iridium, has successfully priced a new EUR 501 million (US$ 559.72 million) 144A/Reg S Bond for the partial refinancing of Line 2 Lima Metro Project in Peru. At pricing, the offering, was more than 7 times oversubscribed, illustrating the strong market appetite for this project. The final book will include over 80 buyers, including some of the largest and most sophisticated institutional investors in the market. The issuance constitutes the largest Infrastructure Bond deal in Peru this year. Likewise, the bond issuance closing is expected on August 01, 2019.

Line 2 Lima Metro Project is a high-profile initiative of the Government of Peru consisting on the design, finance, construction, operation and maintenance of Línea 2 and Ramal Av. Faucett – Av. Gambetta de la Red Básica del Metro de Lima y Callao pursuant to a concession agreement executed on April 28th, 2014 between the Concessionaire Metro de Lima Línea 2 S.A. (Concessionaire) and the Ministry of Transport and Communications. The Project includes 35 stations along 35 km of metro with a total investment of more than US$ 4.5 billion.

The concession of the project will last for a period of 35 years. 

The members of the consortium are responsible for the civil works, electromechanical systems and rolling stock supply. The Concessionaire is owned by Iridium (25.00%), FCC (18.25%), Salini Impregilo (18.25%), Hitachi (11.60%), Hitachi STS (16.90%), and Cosapi (10.00%).

JP Morgan and Goldman Sachs acted as Global Coordinators and Joint Bookrunners and Santander acted as Co-Manager of this new bond issuance.

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