Sao Paulo Metro Line 6

active

The project entails the construction of the São Paulo's Line 6 - Laranja PPP in Brazil. The 15.3km line will serve 15 stations between Brasilândia and São Joaquim, connecting universities and poorer regions to the metro network. The metro line was originally sponsored by Move SP - a consortium of local firms led by Odebrecht which won the contract in November 2013. Construction was halted in September 2016 after the entire sponsor consortium was implicated in the Lava Jato corruption scandal. The state government began a new tender process in 2018 with Acciona eventually taking over the project in 2020. The sponsor consortium that owns the SPV ( Concessionária Linha Universidade) comprises: Acciona with 47%; Société Générale with 39.7%; STOA with 12.3% and Transdev with 1%. The line is expected to come online in 2025, followed by a 19-year O&M contract. Rolling stock will be provided by Alstom. Total capex for the line is now estimated at around $3424.16 million (BRL18 billion), with the state government of São Paulo chipping in $1493.31 million (BRL7.85 billion). The sponsors closed a $1407.71 million (BRL7.4 billion) debt package with development bank BNDES. The financing itself is in 2 tranches with separate disbursement periods: main tranche of $ 1312,59 million (BRL6.9 billion) and post-construction tranche of $95.11 million (BRL500 million). Both tranches are entirely real-denominated and have a tenor of 20 years. Around half of the financing ($627.75 million or BRL3.3 billion) is being backed by a pool of international banks acting as guarantors on behalf of BNDES, with the local development bank also assuming some of the construction risk. The banks are: BNP Paribas, Bradesco, CAF, Credit Agricole, ICO, Intesa Sanpaolo, JP Morgan, Santander and SMBC. BNP Paribas and Santander also acted as sustainability agents. The transaction is the first hybrid project finance deal in Brazilian history and financial close was achieved on 4 August, 2022. Realfin https://www.acciona.com/updates/news/acciona-secures-128-billion-euro-in-financing-for-saos-paulos-subway-line-6/?_adin=02021864894 https://www.bndes.gov.br/wps/portal/site/home?1dmy&urile=wcm%3Apath%3A%2Fbndes_institucional%2Fhome%2Fimprensa%2Fnoticias%2Fconteudo%2Fbndes-libera-2-9-bilhoes-para-concessionaria-do-metro-de-sao-paulo https://www.ijglobal.com/articles/166290/fc-for-s-o-paulo-line-6