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Firms secure Indonesian resources project loan
Two global firms have advised on senior secured bank facilities to support a copper project in Indonesia.
Felicity Nelson
Firms: Herbert Smith Freehills (lenders); Norton Rose Fulbright, Iffla Wade and Akset Law (Finders Resources Limited)
Value: US$165 million
Area: Finance
Key players: The Herbert Smith Freehills team was led by project finance partner Joel Rennie (pictured), who was supported by senior associate Katie Gray and lawyer Emma Zarb. Herbert Smith Freehills associated firm Hiswara Bunjamin & Tandung LLP advised on Indonesian legal issues. Norton Rose Fulbright, Iffla Wade and Akset Law advised Finders Resources Limited on this transaction.
Deal significance:
The lenders are providing lines of credit to PT Batutua Tembaga Raya, an Indonesian limited liability foreign capital investment company.
Finders Resources group owns 75.9 per cent of shares and 24.1 per cent are owned by Daewoo International Corporation for its Indonesian copper project.
This project comprises open-pit mining and heap leaching with solvent extraction and electro-winning to produce LME-grade copper from sulphide ore bodies on the north coast of the island of Wetar in Indonesia.
The cross-border transaction involved legal matters concerning Indonesia, Singapore, Britain, South Korea and Australia.
“It is great to see this project achieve financial close at this stage of the resources cycle, which demonstrates the quality of the asset involved,” Joel Rennie said.
“Being able to support the lenders across the five jurisdictions involved in the transaction was a perfect demonstration of the Herbert Smith Freehills network depth across the globe, providing a complete legal solution for the financing.”
