Clifford Chance

Clifford Chance advises on financing for Nam Ngiep 1 hydropower project JBIC's first project financing loan to Laos

Clifford Chance has advised Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC), and four Thai banks: Bangkok Bank, Export-Import Bank of Thailand, Kasikornbank and Siam Commercial Bank on the financing of the 290 MW Nam Ngiep 1 cross-border hydropower project in Lao People's Democratic Republic (Lao PDR). This is JBIC's first project financing loan to Laos.

The financing was made up of USD loan tranches from the Japan Bank for International Cooperation (under its Overseas Investment Loan program) and from Asian Development Bank (with three Japanese USD lead arrangers entering into B Loan risk participation with ADB) and THB loan tranches provided by the THB lead arrangers and Asian Development Bank. Mizuho Bank, Ltd, Sumitomo Mitsui Banking Corporation and the Bank of Tokyo-Mitsubishi UFJ, Ltd, Bangkok Branch acted as USD lead arrangers. Bangkok Bank Public Company Limited, Export-Import Bank of Thailand, KASIKORNBANK Public Company Limited and the Siam Commercial Bank Public Company Limited acted as THB lead arrangers.

The Nam Ngiep 1 project, a joint venture between the Lao and Thai governments is estimated to cost over US$900 million. The project is jointly owned by Kansai Electric Power of Japan (45%), EGAT International of Thailand (30%), and the Government of the Lao PDR (25%).

The deal is notable in the debt tenor and addresses complex issues around sharing of power infrastructure owned by third-parties.

The financing was led by partners Ashvin Seetulsingh and Philip Sealey, and supported by Bangkok partner Joseph Tisuthiwongse and Singapore counsel Anton Trixl.