Successful financing operation for Line 1 of Lima’s Metro

The project "Sistema Eléctrico de Transporte Masivo de Lima y Chaco - Línea 1" (Lima and Chaco - Line 1 Electric Mass Transportation System), in Peru, successfully ended the bond issue for S/. 629 million, with a 25-year duration, at an annual rate of 4.75% in addition to the inflation adjustment. CAF, Development Bank of Latin America, had a significant participation in structuring these bods, which received a AA+ rating (pe) by Apoyo & Asociados Internacionales in association with Fitch Ratings.

G&M Ferrovias, the project's operator, will use the issue's income to pay the debt resulting from the acquisition of 19 Alstom trains and for the construction of the trains' maintenance workshop. G&M Ferrovias is a joint venture made up by Graña y Montero and Ferrovias Participaciones which, in 2011, obtained the concession to operate and maintain the line for a 30 year period.

In the successful bond issue, Graña y Montero and Ferrovias Participaciones acted as sponsors of the Project, while BNP Paribas and CAF were the structuring agents.

This financial consultancy is part of the services that CAF provides to structure financing operations for infrastructure projects in the region. 

With respect to Lima's Metro, it is estimated that since its entry into operations in 2012, Line 1 benefited 3 million people in the city, which represents approximately 35 percent of its population. As part of the achievements, it reduced the travel time between San Juan de Lurigancho and Villa El Salvador from 180 to 54 minutes, achieving wide acceptance by the public. In September of 2014, it reached the passenger demand originally estimated for 2030. The project is part of the city's future comprehensive transportation system, which will enable the connection of the Metropolitan transportation line and the Metro network.