Guadalajara’s fast-growing southern corridor has long suffered from traffic congestion, long commutes and limited public transport. For residents of Tlajomulco de Zúñiga, daily travel into the state capital could take more than an hour.
That is about to change. Line 4 of Guadalajara’s electric light train will cut commuting times in half, provide a fully accessible and emissions-free transport system, and link 24 neighborhoods with jobs, schools and healthcare across a 21.16-kilometer route.
But Line 4 is not just a story of urban mobility. It is also a financing landmark which wins Infrastructure Financing of the Year in Mexico for the way it redefined the country’s approach to public-private partnerships. Unlike the country’s previous metro systems, which relied almost entirely on public debt, Line 4 was structured under a state-level PPP in a co-investment modality. The model combined equity from sponsors Mota-Engil and CRRC, budgetary support from the Jalisco government, federal contributions via FONADIN, and a project finance package from leading banks.
“It is a complex, well-rounded project from whatever angle you choose to look,” says Bernardo Martínez, an attorney at Galicia, which advised on the transaction. That complexity lay in balancing local, national and private-sector stakeholders, while at the same time guiding CRRC through its second infrastructure venture in Mexico.
The financing reached a milestone in June 2024, when the sponsors closed a 5.2 billion peso ($270 million) loan. The transaction included a 4.3 billion peso tranche maturing in 2039 and a 916 million peso VAT facility due in 2029. Banobras, BBVA México and SMBC served as structuring banks and joint bookrunners.
The challenges were significant. Light rail assets are relatively uncommon in Mexico’s lending market, and the size of the investment required lenders with the appetite and capacity for long-term commitments. On top of that, the banks had to manage multiple roles as senior lenders, VAT lenders and hedge providers — a complexity that demanded a carefully designed legal framework to ensure repayment certainty and transparency in the flow of funds.
“It was made easier by the Mota-Engil team, which is very sophisticated in Mexico, and the CRRC, with an impressive deployment of rolling stock,” Martínez says.
The result was a pioneering structure that shifted Mexico’s urban rail development away from sovereign debt and into a new era of shared responsibility between the public and private sectors. For the first time, a metropolitan electric rail project in Mexico was financed with a mix of equity, public funds and commercial debt. The success of the approach has already prompted plans for replication: Jalisco Governor Pablo Lemus announced in July 2025 that Line 5 — a hybrid rail and BRT system — will follow the same model, again without adding to the state’s debt stock.
Line 4 is more than a new train line. It is a demonstration of how legal innovation, cross-border collaboration and creative project finance can deliver social, economic and environmental value: tens of thousands of people are expected to benefit from shorter commutes and cleaner air, while the transaction itself sets a precedent for future infrastructure projects across Mexico and Latin America.
Infrastructure Financing of the Year: Mexico
Guadalajara Light Train Line 4
$270 million Project Financing
Sponsors: Mota-Engil & CRRC
Joint Bookrunners: Banobras; BBVA; SMBC
Lenders’ Counsel: Jones Day
Sponsors’ Counsel: Galicia Abogados; Pinsent Mansons
Consultants: Infrata
Financial Advisor: Altor
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com