Firm continues strong run of significant deals in Indonesia and other parts of Southeast Asia
Milbank, Tweed, Hadley & McCloy LLP acted as counsel to a syndicate of 34 international lenders behind a US$1.1 billion loan facility and a $400 million “greenshoe” loan facility that was extended to Indonesia’s state-owned oil and gas company Pertamina, one of Southeast Asia’s largest producers of crude oil.
Partners David Zemans and Giles Kennedy, with support from senior associate James Orme, led the Milbank team advising the original seven mandated lead arranger and bookrunners and lenders: Bank of Tokyo-Mitsubishi UFJ, Citigroup Global Markets Singapore Pte. Ltd., DBS Bank, BNP Paribas, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and PT Bank Negara Indonesia (Persero), Tbk. Significant interest from international lenders resulted in the “greenshoe” being oversubscribed and 27 additional lenders joining the facility.
Syndication for the enormously successful amortizing five-year term loan completed in early November 2016. In connection with the facility, Pertamina has announced its intention to use the proceeds to refinance existing indebtedness.
Pertamina is the only Indonesian company listed in Fortune’s Global 500.
“Milbank is delighted to have assisted on this major transaction on behalf of so many important lenders, one that demonstrates the continued strength of Pertamina’s ability to raise very significant financing. Our firm has been involved in a number of Indonesian matters in industries including natural resources and transportation, and we’re obviously very pleased to be considered one of the leading international firms operating in Southeast Asia,” said Mr. Zemans.
In 2015, Milbank also acted as counsel to a syndicate of international lenders behind a US$1.75 billion loan extended to Pertamina. Proceeds from the $1.75 billion syndicated term loan facility were used to fund, in part, the acquisition of a 30% stake in Murphy Oil Corp’s Malaysia oil and gas business.
In addition to Messrs. Zemans, Kennedy and Orme, Milbank lawyers involved in the Pertamina transaction included Rosaline Yusman and Daniel Elliot.
