Paul Hastings Advises Consortium of Sponsors in the US$595 Million Financing of the Cirebon Power Plant in Indonesia
The first new international IPP project to be financed in Indonesia since 1997
Hong Kong (March 11, 2010) Paul, Hastings, Janofsky & Walker, a leading global law firm, is pleased to announce that it has advised PT Cirebon Electric Power (a consortium of Marubeni Corporation, Korea Midland Power Company, Samtan Co., Ltd. and PT Indika Energy TBK) in the development and financing of a 660 megawatt coal-fired power plant in Cirebon, West Java, Indonesia. This long-running transaction is particularly significant as it is the first new international independent power producer (IPP) project to be financed in Indonesia since 1997.
The overall loan amount totals US$595 million, which will be co-financed by commercial banks, including the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, the Tokyo Branch of ING Bank N.V., and the Export-Import Bank of Korea (Korea Eximbank), with Japan Bank for International Cooperation and Korea Eximbank providing a political risk guarantee for the co-financed portion.
Brett W. King, partner in the Paul Hastings office in Hong Kong who led the team, commented: We are delighted to have represented the consortium of sponsors in the financing of this landmark transaction. This is the first international power project in Indonesia to be closed under Indonesias second generation of competitively bid Power Purchase Agreements.
The Paul Hastings team on the transaction was led by partner Brett King and consisted of lawyers from across its offices in Asia including partners Patricia Tan Openshaw, Joseph Kim and Derek Roth and associates Juliet Taylor, Steven DeGracia, Charles Kim and Justin Wolff.
This is the second major Asian power project that Paul Hastings has advised on this month. The firm also recently represented Korea Eximbank, Asian Development Bank and Sumitomo Mitsui Banking Corporation in relation to the financing of a 200 megawatt coal-fired power plant in Cebu, Philippines. The Cebu project is being developed by the KEPCO SPC Power Corp., a joint venture between Korea Electric Power Corp. and SPC Power Corp., and is valued at US$451 million.
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