A subsidiary of the second largest coal producer of Indonesia, Adaro Energy has inked a US$400m senior loan facility from a syndicate of 12 banks to refinance existing debts and capital expenditures. The loan secured has a maturity period of seven years – the longest tenor of any major financing to date in the Indonesian market.

Hadiputranto, Hadinoto & Partners and Milbank has acted for PT Saptaindra Sejati (“SIS”), Indonesia’s third largest mining contractor that also provides services such as exploration, drilling, contract mining and logistical support to Indonesia’s coal mining industry, as its Indonesian and international counsels respectively.

The mandated lead arrangers for the transaction were Hongkong and Shanghai Banking Corporation, Oversea-Chinese Banking Corporation (OCBC), PT Bank UOB Buana, DBS Bank, Sumitomo Mitsui Banking Corporation, PT Bank Mandiri (Persero) Tbk, Bank of Tokyo-Mitsubishi UFJ, Ltd, PT ANZ Panin Bank, Crédit Agricole Corporate and Investment Bank and Standard Chartered Bank. The lead arrangers for the transaction were Chinatrust Commercial Bank Co and Société Générale, both working out of the Singapore Branch.

The mandated lead arrangers for the transaction were Hongkong and Shanghai Banking Corporation, Oversea-Chinese Banking Corporation (OCBC), PT Bank UOB Buana, DBS Bank, Sumitomo Mitsui Banking Corporation, PT Bank Mandiri (Persero) Tbk, Bank of Tokyo-Mitsubishi UFJ, Ltd, PT ANZ Panin Bank, Crédit Agricole Corporate and Investment Bank and Standard Chartered Bank. The lead arrangers for the transaction were Chinatrust Commercial Bank Co and Société Générale, both working out of the Singapore Branch.

Latham & Watkins represented the lead arrangers on the transaction with a finance team led by partners Clarinda Tjia-Dharmadi and David Miles. The firm was involved in a series of previous Adaro financings through a longstanding relationship with the company and the banks Adaro has worked with. “We have been fortunate to have represented bank groups lending into the Adaro group for some period of time now, and this is a continuation of that relationship,” Miles told ALB. “Each deal was different, and this deal had some very interesting structural components that have made it fascinating to work on.”

According to Miles, Adaro’s ability to secure a “market-leading deal” with a seven year tenor is attributed to its good standing in the banking market. “The Indonesian market has been very robust for a period of time now. It is a market that holds a lot of attraction for banks lending into Indonesia and Adaro represents a strong component of that Indonesian market – particularly in a natural resources area where Indonesian companies provide a very compelling story for the bank market at this moment in time,” he said.ALB

Other related stories:

• Milestone US$2bn LNG deal steams ahead; Asia's energy juggernauts (1 Mar 2011)
• Indonesia: Melli Darsa, Jones Day team up for bumper BUMA issue (23 Feb 2011)
• Norton Rose launches new Indonesian alliance (2 Mar 2011)