Norton Rose Fulbright advises on Lima Metro bond issue
A cross-border team of Norton Rose Fulbright lawyers has advised the investment banks that underwrote $563.1 million in bonds that will partly finance the expansion of Lima’s Metro network.
The law firm’s team represented Goldman Sachs and JP Morgan, global coordinators and joint bookrunners of the bonds sold by Lima Metro Line 2 Finance II Limited, the concessionaire for the subway line.
The senior secured notes underwritten by Goldman Sachs and JP Morgan will be due in 2036. The investment banks sold the bonds to more than 80 buyers, including institutional investors, and the deal was seven times oversubscribed.
The concessionaire is comprised of ACS Group’s Iridium, FCC, Salini Impreglio, Hitachi, Hitachi STS and Cosapi.
The first line of the Lima public transit project (pictured), which is an overground, opened in 2011, while a portion of the 35km Line 2 is slated to open in 2021, with completion of the line in 2024. The $563.175 million in bonds will pay for only part of Line 2. Total construction costs are expected to reach $4.5 billion.
Construction has yet to start on the three remaining planned lines, and the cost of building Lines 3 and 4 is estimated at $10 billion.
The cross-border team was led by Daniel Spencer in São Paulo and George Baptista in New York, and included Manny Rivera and Javier Felix, who are also based in New York.
