Metro de Panama closes US$2 billion financings for Line 3

Metro de Panama has completed a financing round launched to fund the proposed Line 3 of its urban monorail transport system. At the end of the round, the institution raised US$2 billion for a project valued at US$2.8 billion.

The timeline set for the project at the moment is four years. The construction of the project has been awarded to HPH Joint Venture, a consortium of Korean contractors which is made up of Hyundai Engineering & Construction and Posco Engineering & Construction.

The said line will is estimated to be about 24.5 kilometers long with a total of 14 stations. It will run from Albrook’s terminal station interconnecting with Line1, to the terminal station of Ciudad del Futuro, in the district of Arraijan, West Panama.

The mandated lead arrangers included Citibank, BNP Paribas, Export-Import Bank of Korea (Kexim), Credit Agricole, Mizuho, Santander, and SMBC. 

Korea Trade Insurance Corporation (KSure) offered covering for the project. Other lead arrangers for the project are Banco Nacional de Panama, BBVA, Banistmo, and KEB Hana Bank. The banks were under the advisement of Milbank. 

“We are continuing to see tremendous activity in the Latin America transportation infrastructure space, with new financings throughout the region,“ said Dan Bartfeld, an exec at Milbank.