Nachrichten June 06, 2016

Shearman & Sterling Advises Sponsors on a $4.3 Billion Coal-Fired Power Project in Indonesia

Shearman & Sterling advised Bhimasena Power Indonesia (BPI) on the development and financing of the approximately US$4.3 billion 2,000MW Central Java greenfield coal-fired power project in Indonesia.  The project, located in Batang Regency in Central Java, will be Indonesia’s first ultra-supercritical coal-fired power plant and one of the largest coal-fired power plants in Asia.  The shareholders in BPI are Electric Power Development Co. (34%), Adaro Power (34%) and Itochu Corporation (32%).  The project is the first public private partnership (PPP) project that combines a guarantee of the Indonesia Infrastructure Guarantee Fund with a guarantee from the Ministry of Finance of Indonesia.

The debt package for the project is approximately US$3.4 billion, and the lenders include Japan Bank for International Cooperation and a syndicate of nine commercial banks: Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation, Shinsei Bank, The Norinchukin Bank, DBS Bank and Overseas-Chinese Banking Corporation.

The Team