Clifford Chance has advised shareholders in financing firm Indonesia Infrastructure Finance (IIF) over an agreement to sell a 14.9 percent stake to Japan’s SMBC, amid increasing global interest in Indonesian infrastructure.
The firm acted for the Asian Development Bank (ADB), Deutsche Investitions- Und Entwicklungsgesellschaft (DEG), International Finance Corporation (IFC) and PT Sarana Multi Infrastruktur (Persero), all of whom own shares in IIF, a financing firm partly owned by the government.
According to agreements signed with SMBC, the Japanese company will subscribe to approximately 14.9 percent of the total issued shares of IIF, which is 34.3 percent-owned by a government unit called PT Sarana Multi Infrastruktur.
IIF focuses on finance in infrastructure sectors such as electricity, toll roads, water management and water supply, and port and telecommunication infrastructure. It will also focus on an advisory business which promotes public-private partnership (PPP) projects and increases the number of commercially viable and bankable infrastructure project streams in Indonesia.
"I'm very pleased to have continued to act for the existing shareholders on this significant milestone for IIF, having acted for ADB, DEG and IFC in the original establishment of IIF, which was the first infrastructure finance company to be established under the Indonesian Minister of Finance Regulation No. 100 of 2009," said Clifford Chance partner Ting Ting Tan, who led the deal.
The value of SMBC’s stake was not disclosed by the parties. Jardin Bahar of Hermawan, Prasetyo & Juniarto acted as local counsels for the existing shareholders and IIF, while Hadiputranto Hadinoto & Partners acted for SMBC. ALB
Ranajit Dam is Southeast Asia Editor at ALB. Follow him on Twitter: @RanajitDam_ALB
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