Shearman & Sterling has represented Light Rail Manila Corp. (LRMC) on a 15-year omnibus loan and security agreement worth P24 billion (around $505.6 million) for the development of its Light Rail Transit 1 (LRT1) Cavite Extension project.
Shearman’s Singapore-based partner Bill McCormack handled the transaction, which is one of the biggest infrastructure project financings in the Philippines to date.
The lender group includes several major Philippine banks, including Metropolitan Bank & Trust Co., Rizal Commercial Banking Corp., and Security Bank Corp., which recently sold a 20 percent stake to Japan’s Bank of Tokyo-Mitsubishi UFJ.
Under the LRT 1 project, LRMC will operate and maintain the existing LRT Line 1 – Metro Manila’s oldest elevated railway – and build an 11.7-km extension from the current end-point at Baclaran, Pasay City to the Niog area in Bacoor, Cavite. Eight new LRT stations will be constructed along this route, encompassing the cities of Parañaque and Las Piñas. Construction work is expected to begin once the Department of Transportation and Communication (DOTC) and the Light Rail Transit Authority (LRTA) delivers the right of way, which is slated in June this year.
LRMC is a joint venture company of Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings and Macquarie Infrastructure Holdings. The total project cost is approximately US$1.4 billion (P65 billion).
