Milbank LLP advised on an Indonesian satellite project recognized by Project Finance International (“PFI”) as 2021 “Asia-Pacific Telecom Deal of the Year.” PFI Award winners are selected by the PFI editorial staff from among submissions made by companies engaged in the transactions.
Milbank advised PT Pasifik Satelit Nusantara (“PSN”) and PT Satelit Nusantara Tiga (“SNT”) as sponsor and borrower, respectively, on the procurement and project financing of SATRIA-1, a high-throughput satellite project. The project, which is a public-private partnership with the government of Indonesia, is valued at US$545 million.
Washington, DC-based Transportation and Space partner Alexis Sáinz led on financing, commercial, regulatory, ground segment procurement, and related negotiations in connection with the public-private partnership with the government of Indonesia. Washington, DC-based Transportation and Space partner Dara Panahy led on the satellite and launch procurement efforts with French aerospace manufacturer Thales Alenia Space and launch services provider Space Exploration Technologies Corp. (SpaceX). The Milbank team representing PSN and SNT overall was led by New York-based Transportation and Space partner Peter Nesgos. Singapore-based Global Projects Energy and Infrastructure Finance partner James Orme; Transportation and Space special counsel Bijan Ganji, and associates Mark Leverkus, Pinky Mehta and Sean Heiden; and Alternative Investments associates Robert Wyse Jackson and Azeem Sulemanji worked on various aspects of the procurement and financing.
The construction of SATRIA-1 is being financed under an export credit facility provided by HSBC, Banco Santander and Korea Development Bank, and guaranteed by French export credit agency Bpifrance. The launch, ground systems and additional project costs are financed under a commercial facility provided by the Asian Infrastructure Investment Bank (AIIB) and Korea Development Bank.
Initiated by the Indonesian Ministry of Communication and Information Technology (“KOMINFO”), the goal of the SATRIA-1 project is to bring cost-effective internet access to Indonesia’s rural and remote areas. SATRIA-1 will be located at the 146° East orbital slot and provide 5G satellite broadband connectivity at 150 gigabytes/second to approximately 150,000 public services, including schools, health facilities and government buildings, with capacity distributed via 105 beams (with an additional 11 beams for maritime support), using a fully digitized payload. Completion of the financing was announced by KOMINFO in a virtual ceremony at Indonesia’s presidential palace on February 26, 2021, with President Joko Widodo in attendance.
