Bogota Sub Bond

pending

The proposed investment involves IFC financing of up to US$125 million to the Municipality of Bogotá through subscription as an anchor investor to an up to US$600 million offshore peso-linked green bond. This bond will be the first offshore green bond issued by a capital city in Latin America and the Caribbean (LAC) and by a municipality in Colombia. IFC proceeds will finance the Municipality of Bogota’s obligations under the Linea 2 del Metro de Bogota (in English, Bogota Metro Line 2 - BML2) being developed by the Bogotá Metro Company (EMB). EMB, fully owned, directly or indirectly, by the Municipality of Bogotá, is the entity responsible for the development and operation of the city’s metro system. Separately, BML2 will receive direct financing from other international and local financial institutions, including the IBRD (see https://projects.worldbank.org/en/projects-operations/project-detail/P179822). EMB is expected to select and award a concession to a private party (“the Concessionaire”) by the end of 2025 to perform the civil works, provide rolling stock, and operation and maintenance. Construction is expected between 2027 and 2032. The BML2 includes a 15.5 km metro line (94% underground) with 11 stations and a 1 km elevated section, including a Patio-Taller (railyards-workshop) over a 22 hectares area. The alignment runs below the densely urbanized boroughs of Chapinero, Barrios Unidos, Suba, and Engativa, bordering the Juan Amarillo wetlands and heading to Calle 72. When operational, peak hour ridership is estimated at 46.500 passengers per hour per direction (pphpd) in the first year, increasing to 49,000 pphpd by 2042. The BML2 aims to reduce traffic congestion, lower greenhouse gas emissions, and improve connectivity and access to jobs and services for underserved populations. The project is expected to benefit nearly 2.5 million people.