Milbank LLP advised a syndicate of major Indonesian and Singaporean banks in the $250 million financing of the Awak Mas gold mine development in South Sulawesi, Indonesia.
The financing, which closed on March 30, 2023, is to be made available to energy resources company Indika Energy Tbk and on-lent to Masmindo Dwi Area, an Indonesian gold mining company. The loan will fund the construction, ownership and development of the project in Luwu, South Sulawesi, and is part of Indika Energy’s public clean energy transition program.
“The Awak Mas project is a significant example of ongoing decarbonization efforts in Indonesia and across Asia,” said Milbank Project, Energy and Infrastructure Finance partner James Orme. “We are pleased to have served as lenders’ counsel in this and other Indika Energy financing transactions.”
The loan, which is structured as a hybrid project financing, is supported by multi-jurisdictional corporate guarantees and a common security package shared with existing high-yield noteholders.
The lending group that Milbank advised included Bank Mandiri (Persero) Tbk., Bank Negara Indonesia (Persero) Tbk., Bank UOB Indonesia, Bank DBS Indonesia, and Bank KB Bukopin Tbk.
The Milbank team was led by Mr. Orme and David H. Zemans and included Deirdre Swift and An Guo.
