Lima’s Subway System Bond Expansion


A cross-border team of Norton Rose Fulbright lawyers advised the investment banks that underwrote US$563.175 million in bonds that will partly finance the expansion of the subway system in Lima, Peru.

The team represented Goldman Sachs and J.P. Morgan, global coordinators and joint bookrunners of the bonds sold by Lima Metro Line 2 Finance II Limited, the concessionaire for the subway line, known as Line 2 of the Lima public transit system’s five-line project.

The senior secured notes underwritten by Goldman Sachs and J.P. 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, which is above ground, opened in 2011. A portion of the 35-kilometer Line 2 is slated to open in 2021, with completion of the line not expected until 2024. The US$563.175 million in bonds will pay for only part of Line 2. Total construction costs are expected to reach US$4.5 billion.

Construction has not started on the three remaining lines. The cost of building Lines 3 and 4 is estimated at US$10 billion.

The cross-border team was led by Daniel Spencer (Picture) and George Baptista (New York) and included Manny Rivera and Javier Felix (New York).

Involved fees earner: George Baptista – Norton Rose Fulbright; Javier Felix – Norton Rose Fulbright; Manny Rivera – Norton Rose Fulbright; Daniel Spencer – Norton Rose Fulbright;

Law Firms: Norton Rose Fulbright;

Clients: Goldman Sachs; JP Morgan;