Clifford Chance

Clifford Chance advises on RM6.5 billion financing for Malaysian power station

Leading international law firm Clifford Chance has acted as international counsel to lenders to Malakoff Corporation Berhad, via its wholly-owned subsidiary, Tanjung Bin Energy Issuer Berhad, on RM6.5 billion financing for a new 1,000 MW supercritical coal-fired power plant. It will be built adjacent to the existing Tanjung Bin power plant.  

The senior debt facilities include the issuance of a RM3.29 billion serially-amortising senior secured Islamic bond (Sukuk), a US$400 million term loan and a RM700 million term loan. The junior facility comprises equity loans of RM1.3 billion.

This power plant was awarded to Malakoff in June 2011 following a competitive bidding process, overseen by the Energy Commission of Malaysia. It represents the first participation of international lenders for a power project financing in Malaysia.

"We are very pleased to have assisted in this landmark transaction," said Singapore partner Ting Ting Tan, who led the deal. "This is not only evidence of the growing importance of these power projects in Malaysia and Southeast Asia, but also the increased international interest that they bring." 

Ting Ting was supported by counsel Matthew Buchanan and senior associates Anton Trixl, Joanne Quek and Daniel Cookson.