ICBC participates in $178.54 million syndicated bridge loan for Bogotá Metro Line 1 (23.9KM) PPP Project (Linked to Project ID#92573)

In October 2019, Apca Transmimetro — a Chinese consortium consisting of China Harbour Engineering Company and Xi'An Metro Company Limited — was awarded a contract for the Bogotá Metro Line 1 (23.9KM) Public-Private Partnership (PPP) Project. It competed against five other consortia for the $4.3 billion contract to design, build, operate and maintain Line 1 of the Bogotá metro. Apca Transmimetro received 100 points in the tender process, compared with 94.54 points for Consorcio Metro de Bogotá, the second most competitive bidder. APCA Transmimetro signed a 20-year concession contract with Empresa Metro de Bogotá (EMB) in October 2020. Then, in November 2021, Metro Línea 1 S.A.S. — a special purpose vehicle (SPV) and joint venture of China Harbour Engineering Company (85% equity stake) and Xi'An Metro Company Limited (15% equity stake) — signed a $178.54 million syndicated bridge loan agreement for the Bogotá Metro Line 1 (23.9KM) Public-Private Partnership (PPP) Project. The loan carries a 3-year maturity (final maturity date: December 2, 2024) and an unknown interest rate. Participants in the loan syndicate include China Development Bank ($44.64 million), the Industrial and Commercial Bank of China ($44.64 million), BBVA ($44.64 million), and Bancolombia ($44.64 million). CDB’s contribution is captured in Project ID#92573. The Industrial and Commercial Bank of China’s contribution is captured in Project ID#92574. The borrower is expected to use the proceeds of the loan to fund the pre-construction phase of the Bogota Metro Line 1 (23.9KM) PPP Project. More specifically, the borrower is expected to use the proceeds of the loan to finance the remainder of the project’s design phase plus the necessary preparation works for construction to begin in January 2023. Upon completion, Metro Line 1 will be a 23.9 km line with 16 stations connecting Portal de las Américas and Calle in the city of Bogotá. Line 1 will use natural light and ventilation (being built above ground on a viaduct) and will use entirely electric trains. The line is expected to enter commercial operations during the second half of 2028. China Harbour Engineering Company and Xi'An Metro Company Limited are the general EPC contractors responsible for project implementation. CRRC Changchun do Brasil Railway Equipamentos e Servicos Lda, the Brazilian subsidiary of Chinese state-owned CRRC Changchun Railway Vehicles Co. Ltd, and Bombardier Inc. (a Canadian maker of trains) are subcontractors. Metro Línea 1 S.A.S. achieved a financial close on December 2, 2021, which typically represents the date of the first loan disbursement. On August 17, 2021, the groundbreaking ceremony for the project was held.

Additional details

1. Xi'An Metro Company Limited is also known as Xi'An Rail Transportation Group Company Limited. 2. The contract for Line 1 is valued at around $4 billion. 3. Advisers to the lenders included: Brigard Urruta – legal Clifford Chance – legal Jun He – legal Advisers to APCA Transmimetro: Cuatrecasas – legal Norton Rose Fulbright – legal.

Number of official sources

2

Number of total sources

3