Mizuho Americas Serves as Sole Structuring Bank, Arranger and Bookrunner for Lima Metro Line 1 Expansion

September 8, 2017

New York, September 8, 2017 – Mizuho Americas today announced it closed a $396 million financing last month for the expansion of Lima Metro’s Line 1, where it acted as the Sole Structuring Bank, Sole Arranger, and Sole Bookrunner. Mizuho was mandated to these roles by Graña y Montero, S.A.A. (G&M) and GyM Ferrovías S.A.(GyMF) for the entire financing package.

Mizuho served as Sole Structuring Bank, Sole Arranger, and Sole Bookrunner for the project while Sumitomo Mitsui Banking Corporation (SMBC) acted as Mandated Lead Arranger together with Mizuho. The financing consisted of two bank facilities:

  • A three-year, $80 million working capital facility for GyMF, the concessionaire of Line 1; and
  • A 17-year, $316 million credit facility to finance the purchase of CPAOs – unconditional and irrevocable payments obligations of the Government of Peru – from the concessionaire. CPAOs are issued upon the completion of a series of project milestones during the three-year construction period.

“We are pleased to have successfully closed this complex financing package, demonstrating Mizuho’s ability to execute innovative financing solutions to address critical infrastructure needs across the region,” said Chris Stolarski, Managing Director and Head of Project Finance, Mizuho Americas. “This transaction will further enhance Mizuho’s strong reputation in the Latin America structured and project finance markets.”

With this financing package, the Lima Metro Line 1 is expected to increase the frequency of trains during peak travel times, from every six to every three minutes and ridership capacity by more than 55 percent.

“We are honored to have worked closely with GyMF and the Peruvian government to fund this crucial infrastructure project for the ongoing development of Peru and the City of Lima,” said Olivier Baratier, Managing Director, Co-head of the Structured Credit Group, Mizuho Americas. “The Line 1 Expansion Debt Program was an exciting challenge. Our firm worked seamlessly across business lines and products to deliver a unique solution that we believe will be a benchmark for future concession financings in Peru and Latin America.”

G&M is the Sponsor of the project.  It is the largest engineering and infrastructure company in Peru by revenue, has 24 companies in five countries and more than 28,000 employees. G&M is listed on the Lima Stock Exchange and New York Stock Exchange.  

GyMF is the concessionaire of Line 1 of the Lima Metro, a 34.6-km transit system in operation since January 2012. The expansion will increase the daily ridership from approximately 320,000 to 500,000. GyMF is 75% owned by G&M, the Sponsor of this project.

About Mizuho Americas
Mizuho Americas is a leading financial institution comprising several legal entities, which together offer clients corporate and investment banking, financing, securities, treasury services, asset management, research and more. With professionals in offices throughout the US, Canada, Mexico, Brazil and Chile, Mizuho’s operations in the Americas connect a broad client base of major corporations, financial institutions and public sector groups to local markets and a vast global network. Learn more at mizuhoamericas.com.

Mizuho Americas is an integral part of the Japan-based Mizuho Financial Group, Inc. (NYSE: MFG). Mizuho Financial Group is one of the largest financial institutions in the world, offering comprehensive financial and strategic services including private banking and venture capital through its subsidiaries. The group has over 900 offices and 56,000 employees worldwide in nearly 40 countries throughout the Americas, EMEA, and Asia. At the end of 2016, its total assets were $1.8 trillion. Learn more about Mizuho Financial Group at https://www.mizuho-fg.com.

Mizuho news from around the globe
Mizuho Global News
Back to top