LIMA – Spain’s Banco Santander said on Sunday it acted as “global coordinator and financial adviser” for the placement of $1.15 billion in bonds for the construction of Line 2 of the Metro in Lima, Peru.
The bond placement is the largest ever on global markets to finance a project in Peru, the bank said in a statement.
“This sale of bonds, which come due in the year 2034, opens the way for financing part of the Metro line, which will run underground for 35 kilometers. It is expected that the project will have total investment of approximately $5.4 billion,” the Spanish banking giant said.
The project is expected to be completed in 2020, Banco Santander said.
The bonds will yield 5.875 percent, the bank said, adding that the coupon rate came in under 6 percent because they were oversubscribed by 2.2 times.