Lee & Ko Advises Korean Consortium on USD 1.3 Billion Financing of Panama Metro Tunnel

Lee & Ko has advised the Korean consortium (as borrower) comprised of Hyundai Engineering & Construction Co., Ltd., POSCO Eco & Challenge Co. Ltd. and Hyundai Engineering Co., Ltd., in connection with the consortium’s Syndicated Discounted Repurchase Facility financing for the construction of the Panama Metro Line 3. 

The financing was structured as a securitization of government payment certificates (Certificados de No Objeción, or CDNOs) via three separate facilities provided by KEXIM, IDB Invest (the private sector arm of the Inter-American Development Bank), and a syndicate of seven international banks covered by K-Sure.

The funding will be used by the consortium to extend the Panama Metro Line 3 under the Panama Canal and further demonstrates the trust that international financiers place in the technical expertise of Korean contractors exporting their skills and know-how worldwide.