Clifford Chance

Clifford Chance advises on landmark US$4 billion bond issuance by PT Indonesia Asahan Aluminium Persero (Inalum)

Leading international law firm Clifford Chance has advised BNP Paribas, Citigroup and MUFG as joint global coordinators and BNP Paribas, CIMB, Citigroup, Maybank, MUFG, SMBC Nikko and Standard Chartered Bank as joint bookrunners and joint lead managers on the US$4 billion bond issuance by Indonesian state-owned mining company PT Indonesia Asahan Aluminium Persero (Inalum).

The deal is the largest-ever US dollar corporate security from a non-financial issuer in Indonesia and among the largest in Asia this year.

The proceeds will fund the acquisition of a direct and indirect majority beneficial stake in PT Freeport Indonesia, which owns the Grasberg Mine in West Papua, Indonesia. The Grasberg Mine is the largest gold mine and the second-largest copper mine in the world. Inalum was appointed in 2017 by the Government of Indonesia as the holding company for Indonesia's mining operators.

Singapore partner Johannes Juette led on the deal, with support from Hong Kong partner Matt Fairclough, associates Stephanie Liman and Ee Nian Lim, and paralegal Fanny Lum.

Johannes said, "We are delighted to have advised on such a significant transaction for the company, Inalum's first-ever US dollar bond issuance. The deal demonstrates our knowledge of international debt capital markets and our strength on the most sophisticated financing deals in Indonesia."

Clifford Chance also advised the Indonesian government on the first-ever sovereign green sukuk and on its issuance of approximately JPY100 billion (US$799 million) samurai bonds, and PT Chandra Asri Petrochemical Tbk, Indonesia's largest integrated petrochemical manufacturer, on its US$300 million bond issuance and its US$378 million rights issue.