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Host Country: Indonesia |
Industry/Sector: Energy |
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Sponsor: Genting Power Holdings Limited (55%1); SDIC Power Holdings Co., Ltd. (40%1); PT Hero Inti Pratama (5%) |
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Borrower: LLPL Capital Pte. Ltd. |
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Total Investment: N/A |
Debt Amount: US$775 million |
Financing Terms: 20 years |
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Purpose of Financing: |
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Refinancing, paying hedge termination costs, funding the DebtService Reserve and Major
Maintenance Reserve Accounts,paying transaction costs and general corporate purposes
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Guarantee Structure: |
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i. pledge of Banten’s capital stock.
ii. all property, including plant and equipment, insurance and reinsurance receivables and intellectual property rights.
iii. first-ranking mortgage over Banten site.
iv. Banten’s and the Issuer’s rights in certain bank accounts
v. a pledge by the Issuer of all intercompany loans.
vi. irrevocable powers of attorney (“POA”) by the Project to operate the Project and exercise rights under Project documents (excl. PPA).
vii. irrevocable POA by the shareholders of the Project to exercise voting rights and sell shares. |
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Participating Banks and Roles: |
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- Sole Financial Advisor: Citi
- Joint Global Coordinators: Citi, Barclays
- Joint Lead Managers and Joint Bookrunners: Citi, Barclays, CIMB
- Co-Managers: SMBC Nikko
- Bond Trustee, Principal Paying Agent, Registrar, Transfer Agent, Onshore & Offshore Account Bank and Security Agent: Citi. |
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Overview and Highlight of Project: |
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- On January 29th, 2019, PT Lestari Banten Energi achieved successful financial close in respect of its inaugural issuance of a 20-year US$775mm non-recourse senior secured project bond offering maturing in 2039. Citi served as Sole Financial Advisor, Lead Left Joint Global Coordinator and Lead Left Joint Lead Manager and Joint Bookrunner.
- Banten’s inaugural bond issuance following their award-winning project loan financing in 2013, as the first Indonesian IPP without government support of the Perusahaan Listrik Negara PT (“PLN”) power purchase agreement (“PPA”).
- First investment grade project bond out of Asia and largest bond offering by an Indonesian private sector issuer in 2018-2019YTD - First project in Asia to complete a non-recourse bond refinancing transaction shortly after project completion (< 2 years of operating track record).
- Investment grade rating from two rating agencies despite relatively short operating track record, providing flexibility of a future Banten 2 project which will be a separate project adjacent to Banten that will share common facilities and O&M, as well as other complexities around refinancing benefits within the PPA.
- Refinancing optimizes Project’s capital structure, improving cost of debt, removing refinancing risk and extending debt tenor to match the underlying 25-year PPA.
- Citi’s Sole Financial Advisor role on this transaction exemplifies our best-in-class solutions across structuring, ratings, and execution project bonds and ability to support key relationship clients through the progression of their key assets.
- First ever project bond supporting a Belt and Road initiative project.
- Well subscribed orderbook with sticky participation from high quality institutional buy-and-hold global EM investor base. |
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Awards or Public Evaluation: |
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N/A |
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Other Information: |
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N/A |
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