In a major transportation financing in Chile, Milbank, Tweed, Hadley & McCloy LLP represented international bank groups in committing a total of US$800 million in financing to be used for the expansion of the metropolitan subway system in Santiago, Chile.
Metro de Santiago, Chile’s state-owned mass transit authority, has seen its ridership nearly triple over the past decade, a reflection of Santiago’s economic growth and emergence as one of South America’s major business hubs. An average 2.5 million passengers currently use the city’s Metro system each day, making it one of the largest mass transit lines in South America. The new financing will be used to help build and expand two new subway routes across the city — the Number 3 and Number 6 lines.
Milbank advised banking syndicates providing working capital for the expansion project. Syndicates led by BNP Paribas and Sumitomo Mitsui Banking Corporation committed to lend Metro US$800 million. The financing closed in late December of 2014 with a total of 8 international banks filling up the lending book.
Milbank’s financing team was led by New York partner Daniel Bartfeld, who heads the firm’s Project Finance group, along with Los Angeles partner Allan Marks and associates Timothy Fitzpatrick, Jennie DiFiore and Carolyn Miller.
“Santiago continues to advance as one of the leading cosmopolitan and business centers of the Americas and its metro system is a standout among mass transit operations in the region,” Mr. Bartfeld said. “We’re happy to have worked closely with two world-class banking groups in delivering a major financing package to help Metro de Santiago further expand its service for those living and working in Chile’s capital city.”
Source: www.milbank.com
