Latin America’s $2 trillion infrastructure gap is often blamed on long delays between the conception of projects and their delivery. Few examples illustrate this better than Bogotá’s metro. First proposed in the 1940s, the idea remained on paper for decades while the Colombian capital swelled from a city of 1 million to a metropolis of more than 8 million today.
Eighty-five years later, the wait is nearly over. The first line of the Bogotá Metro is under construction and scheduled to open in 2028—an achievement that will bring modern urban mobility to one of the world’s few megacities without a metro system.
“This is an iconic project. While any infrastructure is important, I think this one stands out for the benefits for the population and the complexity of the project financing,” says Manuel Quinche, partner at Cuatrecasas in Colombia, who advised on the deal. “Bogotá is one of the few megacities in the world without a metro and this project is going to close some of our infrastructure gap.”
Line 1 will span 23.9km with 16 stations, cutting through nine districts of Bogotá and interconnecting with the city’s TransMilenio rapid bus system. It is designed to carry more than 1 million passengers per day, dramatically reducing commute times and offering reliable, electric-powered public transport.
The social and environmental gains are significant. The system is expected to reduce 171,000 tons of CO₂ emissions annually while expanding equitable access to jobs, schools, and healthcare. By linking underserved neighborhoods to the city’s core, the metro will not only ease traffic but also tackle inequality and improve quality of life.
The project is being built by a consortium led by China Harbour Engineering Company (85%) and Xi’an Rail Transportation Group (15%).
The $515 million financing, whichclosed in November 2024, was as intricate as the engineering. It combined two distinct credit lines: a $230 million SOFR-based facility provided by the Bank of China and ICBC through their Panama branches, and a COP 1.2 trillion ($285 million) peso tranche syndicated by BBVA Colombia, Banco de Bogotá, the national development bank FDN, and other local lenders.
What made the deal exceptional was the financial architecture, which departed from conventional project finance norms. Without a traditional EPC contract in place, a novel mechanism was crafted around security interests, debt-sizing, and payment flows that balanced lender protections with the borrower’s operational needs. The result was a sophisticated financing package that unlocked resources for one of the region’s most transformative public works.
The project also faced political headwinds. Support from key government authorities shifted with a change in administration, raising concerns about continuity and lender confidence. Adaptive clauses built into the financing documents helped mitigate this uncertainty, embedding resilience into the deal’s structure and keeping momentum on track.
Bogotá’s Metro Line 1 financing stands as a landmark in Latin American infrastructure: an ambitious, socially inclusive, environmentally sustainable project underpinned by innovative financial structuring and cross-border legal coordination. Its lessons extend far beyond Colombia, offering a model for how complex urban transit projects can be delivered in emerging markets.
With plans already underway to extend Line 1 and begin Line 2—with more than $1 billion in additional financing expected—the Bogotá Metro is poised to transform the city’s urban fabric for decades to come.
Urban Transport Financing of the Year
Bogotá Metro Line 1
$580m Project Financing: COP revolving loan: COP 1.4tn ($350m)
USD revolving loan: $230m
Sponsors: China Harbour Engineering Company (CHEC); Xi’an Rail Transportation Company
Lenders: BBVA Colombia; Banco de Bogotá; Bank of China (Panama); FDN; ICBC (Panama)
Counsel to Lenders: Brigard Urrutia; Clifford Chance; Jingtian & Gongcheng; Lovill
Counsel to Sponsors: Cuatrecasas; Norton Rose
Trustee: Fiduciaria Bancolombia
Offshore Administrative Agent: ICBC Perú Bank
Administrative Agent: Credicorp Capital Fiduciaria
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com