Deal for 3 generators in northern Sumatra led by Singapore-based partner James Murray
SINGAPORE, November 18, 2016 – Completing another major transaction in the Indonesia energy infrastructure space, Milbank, Tweed, Hadley & McCloy LLP advised the Korea Trade Insurance Corp. (K-sure) and a group of commercial banks in connection with the more than US$147 million financing of a hydroelectric power project on the Indonesia island of Sumatra.
The Hasang Hydroelectric Power Project, scheduled for completion in 2019, will consist of three 13-megawatt generators located in northern Sumatra, the westernmost island of the Indonesian archipelago.
The financing, a total loan commitment of US$147,525,502, closed on October 28, 2016.
James Murray, a Project, Energy and Infrastructure Finance partner based in Milbank’s Singapore office, led the representation of K-sure along with The Korea Development Bank, Société Générale (Hong Kong Branch), Société Générale (Singapore Branch), and Sumitomo Mitsui Banking Corp. (Singapore Branch). James was supported by senior projects attorney Kristina Hokenberg and associate Dan Elliott, all based in Singapore, and other members of Milbank’s market-leading Asia Project Finance team.
The Hasang project is the first IPP (independent power producer) financing in Indonesia by K-sure, an export credit agency, and by project sponsor LG International, a major South Korea-based trading company.
Mr. Murray said: “Milbank is delighted to play a leading role in yet another Indonesian power project designed to bring much-needed utility services to the island of Sumatra. It is also a great honor to advise leading Korean insurance agency Ksure on its first IPP financing in Indonesia and to support LG International in the development of its global IPP business.”
Milbank has previously advised international financial institutions on a number of important hydropower projects on Sumatra. These include representing the lenders in the US$130 million financing of the 45-megawatt Wampu power plant in northern Sumatra, and advising the lenders in the US$191 million Semangka project in the southern part of the island.
