15 July 2020
Clifford Chance advises on US$55 million refinancing of Cambodian power transmission line
Leading international law firm Clifford Chance has advised Mizuho Bank, Ltd and ING Bank N.V., Singapore Branch as the lenders in connection with the US$55 million refinancing of a power transmission line in Cambodia.
The project comprises an approximately 110km double circuit 230 kV overhead transmission line which links two substations from North Phnom Penh to Kampong Cham and provides a stable supply of electricity to the greater Phnom Penh region. It is owned and operated by Cambodian Transmission Limited, a special purpose vehicle incorporated in Cambodia and an indirect subsidiary of the Malaysian conglomerate HNG Capital Sdn Bhd.
The loan from Mizuho Bank and ING Bank replaces the financing previously offered by Export-Import Bank of Malaysia Berhad and is supported by a guarantee from the Multilateral Investment Guarantee Agency (MIGA), which provides protection against transfer restriction, expropriation, war and civil disturbance and arbitral award default.
Nicholas Wong, Singapore partner and co-head of the firm's Worldwide Projects Group said, "We are delighted to be involved in the lenders' and MIGA's first transaction in Cambodia. This was an exciting opportunity for the Clifford Chance team to be involved in the developing Cambodian project finance market and to support Mizuho Bank and ING Bank in demonstrating their commitment to supporting power generation and transmission in the region notwithstanding the challenges faced by the global COVID-2019 pandemic."
Nicholas led a team comprising associates Laurence Wong and Mark Hee and trainee Koo Zheng Xuan. Partner Kabir Singh, counsel Daniel Tan and senior associate Matthew Brown advised on aspects of Singapore and English law; and partner Paul Landless and senior associate Teoh Mae Yen provided derivatives advice.