Santo Domingo

case studies
santo domingo
roads & transit

Financing rolling stock and mechanical equipment

The Santo Domingo Metro is a rapid transit system in Santo Domingo, the capital of the Dominican Republic

The challenge

The Santo Domingo Metro is a rapid transit system in Santo Domingo, the capital of the Dominican Republic. In January 2009, Line One of the Metro began providing commercial services. The Metro System is the first in the country and second in the Caribbean. Daily ridership on Line One is approximately 105,000 people.

Construction of Line Two of the Metro is underway. In order to purchase electromechanical equipment and rolling stock components, €270 million of financing was required. The electromechanical equipment will be supplied by the Eurodom Consortium made up of Thales and TIM / TSO and the rolling stock by Alstom Transport, with the equipment originating in Spain, France, Germany and Belgium. With this project total ridership per day will increase to 250,000 people.

The Ministry of Finance of the Dominican Republic, is guarantor of the facilities, providing an unconditional, irrevocable guarantee supporting the borrower under the facilities. The Office for the Restructuring of Transit (OPRET) is the borrower.

The solution

Citi participated as a mandated co-lead arranger in a syndicated €270 million Export Credit Agency (ECA) supported financing for OPRET to finance the purchase of the electromechanical equipment and rolling stock components for Line Two of the Santo Domingo Metro.

Citi, and the other mandated lead arrangers, leveraged the financial structure that had been implemented for the Line One financing of the Metro. This allowed for a certain and rapid execution of the Line Two transaction.

The result

The inclusion of four ECAs enabled OPRET to maximize ECA-supported financing and minimize commercial debt in its financing mix.

The financing signals that international investors continue to have confidence in the Dominican Republic's ambitious infrastructure development plan, which will deliver a wide range of benefits to its citizens and economy.