Clifford Chance

Clifford Chance advises SMBC on US$1.62 billion syndicated loan for Indonesia's state-owned electricity firm, PLN

Leading international law firm Clifford Chance advised the lead arranger and structuring bank, Sumitomo Mitsui Banking Corporation (SMBC), on the US$1.62 billion syndicated loan to Perusahaan Listrik Negara (PLN), Indonesia's state-owned electricity firm. The offshore US dollar credit facility with 20 international banks, signed on Oct 25, was the first of its kind for PLN.

The loan will finance the construction of power plants as a part of the implementation of the Indonesian government’s 35,000-megawatt (MW) generation programme. The programme, launched by President Joko Widodo’s administration, aims to develop power plants (both conventional and renewable) with a combined capacity of 35,000MW to meet Indonesia's growing demand for electricity. The initiative involves both the public and private sector, where PLN will develop approximately a third of the power plants, and the rest would be open to development by the private sector.

Partner Gervais Green led on the deal and said, "We are delighted to have advised SMBC on such a significant transaction for PLN. The deal continues to demonstrate our strength on advising on large and sophisticated financings in Indonesia."

Clifford Chance also recently advised on the landmark US$4 billion bond issuance by PT Indonesia Asahan Aluminium Persero (Inalum) and on the first-ever sovereign green sukuk by the Government of Indonesia.