NEW YORK,
Sept. 8, 2017
/PRNewswire/ -- 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
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SOURCE Mizuho Americas