24 March 2021
Clifford Chance advises on Indonesia’s first sustainability-linked bond
Leading international law firm Clifford Chance has advised Credit Suisse and DBS as joint bookrunners on PT Japfa Comfeed's US$350 million Senior Fixed Rate Sustainability Linked Bond (SLB) issuance. Due 2026, the SLB is the world's first by an agri-food company and the first by an Indonesian company. It is also the first US-dollar denominated sustainability-linked bond issuance from South East Asia. The SLB is listed on the Singapore Stock Exchange.
The Sustainability Performance Targets under the bond are the building of wastewater treatment and recycling facilities at Japfa's facilities. The coupon under the bond will step up by 25bps if the Sustainability Performance Target is not achieved.
Lead partner Johannes Juette offered, "We are delighted to once again advise on a market first in Indonesia. Investor appetite for sustainability-linked instruments and ESG-focused products will continue to grow in Asia, and our team is glad to play a role in the transition toward embedding sustainable practices in business and societies."
The Clifford Chance team included Johannes, partner Gareth Deiner and senior associate Shashwat Tewary.
PT Japfa Comfeed is one of Indonesia's leading agri-livestock companies.
Clifford Chance is a market leader in Indonesian debt issuances and regularly advises on first-to-market sustainability-linked, green and ESG-focused transactions in the region including South East Asia's first public sustainability-linked bond issuance, the first US dollar sustainability-linked bond in Asia (ex-Japan), the first investment grade green project bond from the private sector in Indonesia, the first sovereign green sukuk for the Republic of Indonesia and the first US dollar Corporate Green Bond benchmark offering from a Singapore-headquartered company.