Case Study: Inalum
Widyawan & Partners advised PT Indonesia Asahan Aluminium (Persero) (Inalum) on their first ever US dollar bond deal, overseeing the sale of US$4billion of bonds to fund majority shares in the world’s largest gold mine. Acting as legal counsel to joint lead bookrunners, the bonds were sold in four tranches; US$1b of 3-year bonds at a yield of 5.23%, US$1.25b of 5-year bonds at a yield of 5.71%, US$1b of 10-year bonds at a yield of 6.53% and US$750m of 30-year bonds at a yield of 6.757%. Proceeds from the sale were used to fund the acquisition of majority shares in PT Freeport Indonesia. Located in the province of Papua in Indonesia, this is an affiliate of US mining giant, Freeport McMoRan, who are concession holders of Grasberg (the world’s largest gold mine).
“This type of deal does not come every day, and for me this is a once-in-a-lifetime chance to directly contribute for our nation!”
Randy Irawan, Banking, Managing Associate
Case Study: Commonwealth Bank of Australia
Recently there have been several share sale transactions in the Southeast Asian insurance sector, with buyers attracted by the robust growth rates in insurance premiums. Linklaters' corporate team has been involved in most of these high-profile insurance M&A and life insurance bancassurance transactions. So when Commonwealth Bank of Australia (CBA) wanted to streamline its operations and focus on its core banking business, we were the obvious partner of choice to oversee the sale of its Indonesian life insurance business, PT Commonwealth Life. CBA is Australia's largest bank and one of the largest companies listed on the Australian Stock Exchange, so there was a great deal of interest in this high-profile transaction. We eventually shortlisted five final bids, with FWD Group (a leading insurance group in Asia) as the winning bidder. Upon completion of the sale – which will be around US $290 million – PT Commonwealth Life and CBA's Indonesian banking business, PT Bank Commonwealth, will enter into a 15-year life insurance distribution arrangement.
Case Study: Jawa 1
This deal was awarded Asia Pacific Power Deal of the Year by PFI Awards 2018. We are acting for the PT Pertamina, Marubeni and Sojitz consortium on the development and financing of a 1,760MW Jawa 1 gas-fired, combined-cycle power project in West Java, Indonesia. This cutting-edge project includes the construction and operation of a dedicated Floating Storage and Regasification Facility by a separate consortium, which includes IPP sponsors. This is the first time such a structure has been used in Indonesia, so the project has given rise to a number of ground-breaking structural considerations that have differed vastly from previous power sector developments. As such, the project has required detailed legal expertise with access to the most current knowledge – a challenge that our team have easily accommodated.
“It was such an opportunity to be involved in a big-scale project financing transaction for the development of one of the biggest gas-fired combined-cycle power project in Indonesia. I have gained a lot of knowledge not only on the financing aspect but also on the corporate and project aspects of this transaction. Our team has been working to a great extent in dealing with tremendous amount of CP items.”
Christo Yosafat, Banking, Managing Associate