Allen & Overy advises on the refinancing of Banten-1 power plant
18 February 2019
Ginting & Reksodiputro (in association with Allen & Overy) has advised the joint lead managers, co-manager and Allen & Overy has advised the trustee on LLPL Capital’s debut 144A/Reg S offering of US$775,000,000 6.875% Guaranteed Secured Senior Notes due 2039. Following bond refinancings in 2018 by Wayang Windu and Paiton, this recent refinancing confirms the growing use of bonds as a useful refinancing instrument for major projects in Indonesia.
The issuer, LLPL Capital is owned by a consortium of Genting Power Holdings Limited (a wholly owned subsidiary of Genting Berhad (Malaysia)) and SDIC Power Holdings Co. Ltd. (China) which own the Banten 1 670MW supercritical, coal-fired steam power plant in Banten Province, Indonesia. The notes were issued primarily to facilitate the prepayment of Banten 1’s senior secured facilities provided by a syndicate of banks in 2013 for the original construction of the plant. Moody’s Investors Service Pte Ltd and Fitch Ratings Ltd had assigned ratings of Baa3 and BBB- for the notes, respectively.
Commenting on the deal, Daniel Ginting, managing partner for Ginting & Reksodiputro in association with Allen & Overy said: “The positive investor reaction for this offering is a welcome indication of investor confidence in the use of debt capital markets instruments to replace project loans in the Indonesian market.”
The team was led by Daniel Ginting and Harun Reksodiputro with support from senior associate Mohammad Andrew and associates Richele Suwita, Risnan Yosal, Lintang Nugraheni and Bunga Cesaria, with partner Tim Beech and senior associate Raj Sankaran advising on trustee matters.