BNDES to provide US$870mn for São Paulo rail improvements

Brazil’s development bank BNDES approved 4.6bn reais (US$871mn) in financing for improvements to São Paulo state’s train lines No. 8 and No. 9. 

"The support aims to finance the investments the concessionaire likely make through 2027, in the total amount of 6.5bn reais," BNDES said in a press release.

Concessionaire ViaMobilidade comprises CCR (80%) and RuasInvest (20%). Both lines serve 42 stations and use 74km of tracks, transporting around 1mn passengers per day.

According to BNDES, most funds will go to the purchase of 288 wagons, built by Alstom Brasil at the Taubaté plant.

Other investments are earmarked for signaling and power supply systems, as well as civil works to adapt stations, rails, mechanical workshops and patios.

"Of the total amount of support, 2.5bn reais will be released in the form of sustainable infrastructure debentures, 850mn reais as BNDES FINEM credit line and 1.25bn reais in the form of a backstop subcredit (guarantee to cover future financing). The operation was structured in the project finance modality, in which the main guarantees are related to the project and do not weigh on the company's assets," added BNDES.