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News Jun 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 Shearman & Sterling team was led by partner Bill McCormack (Singapore-Project Development & Finance) and included partners Ben Shorten (Singapore-Project Development & Finance) and Etienne Gelencsér (Tokyo-Project Development & Finance); with support from counsel Scott Baggett, Alfred Ng, Anna Chung (all Singapore-Project Development & Finance) and Crystal Chen (Hong Kong-Project Development & Finance); and associates Chad Passlow, Nick Sinclair, Sarah Park (all Singapore-Project Development & Finance), Chongxiao Liu (Hong Kong-Project Development & Finance), Nathaniel Rowe (Tokyo- Project Development & Finance) and Thomas Evans (London-Finance Group).