Milbank, Tweed, Hadley & McCloy LLP advised PT Lestari Banten Energi, a project company of Genting Berhad and SDIC Power, in connection with the project bond issuance of US$775 million 6.875% Guaranteed Secured Senior Notes due 2039. The bonds were issued by LLP Capital Pte Ltd. and unconditionally and irrevocably guaranteed by PT Lestari Banten Energi.
PT Lestari Banten Energi is an independent power producer that operates a 670 MW (gross) supercritical, coal-fired power generation facility in West Java, Indonesia and provides electricity directly to the Java-Bali power grid under a long-term power purchase agreement with PT PLN. A portion of the proceeds from the issuance will be used to refinance existing senior debt facilities of PT Lestari Banten Energi.
The notes are listed on the Singapore Exchange Securities Trading Ltd. and the initial purchasers were Citigroup, Barclays, CIMB and SMBC Nikko.
The Milbank team was led by Singapore-based partner Naomi Ishikawa, senior attorney Jim McFarlane and associate Rickpaul Vander. Asia Managing Partner David Zemans, Special Counsel Melissa Lewis and associates Robert Wyse Jackson and Daniel Elliott also provided support on the transaction.
Ms. Ishikawa noted, “We are thrilled that this offering was extremely well received by investors, despite challenging market conditions. We hope that this deal serves as a blueprint for other project bonds in the region this year and we look forward to continuing to advise clients in Southeast Asia in 2019.”
Mr. Zemans added, “We are very pleased to have advised PT Lestari Banten Energi on this landmark transaction. This project bond is the first Asian deal of its kind this year and one of only a few project bonds from the region right now. For Milbank to have played a role in its success is a tremendous accomplishment for our team and marks the latest complex cross-border transaction in which we have been involved in Southeast Asia.”
Milbank’s Indonesian project bond experience also includes acting for Star Energy Geothermal (Wayang Windu) on its 15 year US$580 million issuance of green bonds in 2018.
