Global law firm Norton Rose Fulbright has advised a consortium of lenders on term and working capital facilities in the amount of US$565 million for PT Well Harvest Winning Refinery.
The consortium of lenders comprised DBS Bank Ltd, Bank of China (Hong Kong) Limited Jakarta Branch, Lembaga Pembiayaan Ekspor Indonesia (Indoexim), Oversea-Chinese Banking Corporation Limited, PT Bank OCBC NISP Tbk, BNP Paribas and The Export-Import Bank of China (CEXIM)
PT Bank DBS Indonesia is the facility agent under the credit facilities, and DBS Bank Ltd and Bank of China (Hong Kong) Limited Jakarta Branch are offshore and onshore security agents respectively. BNP Paribas has been appointed as the ESG coordinator bank. A portion of the term facilities benefit from an overseas investment insurance policy from China Export & Credit Insurance Corporation (Sinosure).
PT Well Harvest Winning Refinery is jointly owned by China Hongqiao Group Limited, Shandong Weiqiao Aluminium & Electricity Co., Ltd, PT Cita Mineral Investindo Tbk and Winning Investment Group.
The financing will support the construction of Phase 2 of PT Well Harvest Winning Refinery’s alumina refinery project in Kendawangan, West Kalimantan, Indonesia as well as the working capital requirements for the on-going operations of Phase 1.
The Phase 2 expansion of the project includes increasing the capacity of the alumina refinery and the existing captive thermal power plant, as well as construction of a port, onshore loading and unloading facilities and associated infrastructure and would increase the nameplate alumina output from 1 million tonnes per annum to 2 million tonnes per annum. This project is Indonesia’s first, and largest, smelter-grade alumina refinery.
The Norton Rose Fulbright cross-border team on the deal was led by Singapore partner Nick Merritt and comprised of a team of finance partners Yu-En Ong, Janelene Chen, David Milligan, Paul Wee, senior associates Aditya Rebbapragada and Aditi Aparajita, and associates William Holmden, Michael Kim, Hazel Lim, Yaxun Wang, and Daryl Poon. Partners Nicky Davies, Tom Luckock and Alfred Wu, consultant Sonam Kathuria, and associates Muriel Cheng, Gigi Chang, and Cindy Wu assisted due diligence and project document review, and partner Colin Rice and associate Francesca North advised on the hedging aspects of the deal.
Oentoeng Suria & Partners acted as Indonesian law counsel to the lenders.
Global Law Offices also provided PRC law advice. Walkers (Singapore) Limited provided Cayman Island law advice.