Linklaters and Hadiputranto, Hadinoto & Partners (HHP), the Indonesian member firm of Baker McKenzie, have advised BNP Paribas and ADM Capital as the arrangers of a $95 million corporate sustainability bond, the first of its kind in Asia. 

The bond will finance a sustainable natural rubber plantation on heavily degraded land in two provinces in Indonesia. It was arranged by BNP and issued by Tropical Landscapes Finance Facility (TLFF), with the proceeds financing PT Royal Lestari Utama (RLU) and its subsidiaries. 

RLU is an Indonesian joint venture between France’s Michelin and PT Satria Cemerlang. It was represented by Assegaf Hamzah & Partners. Meanwhile, the HHP team was led by Norman Bissett.

The loan to RLU will be managed by ADM Capital and is partially guaranteed by the U.S. Agency for International Development.  The project also involves a collaboration with the World Wildlife Fund.

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