SINGAPORE (December 22, 2003) – Lawyers at White & Case LLP have advised on a series of transactions related to the financing and construction of the FeNi III ferronickel expansion project of PT Antam Tbk in Indonesia.
The FeNi III project includes investment in a power plant and a new smelter that is expected to more than double Antam’s nickel in ferronickel capacity to 26,000 tonnes at its facilities located at Pomalaa in Sulawesi, Indonesia.
The aspects of the FeNi III project on which White & Case have advised PT Antam as international counsel include:
· Issuance of US$200 million in US-dollar denominated notes by PT Antam’s Mauritius-based subsidiary, Antam Finance Ltd., and guaranteed by the PT Antam as part of its debt financing of the FeNi III project. Issued September 30, 2003, the seven-year notes bear a 7.373% coupon rate with a yield to maturity of 7.875%.
· The Engineering, Procurement, and Construction (EPC) contract for development of the smelter, which was negotiated with a consortium of Mitsui & Co., Ltd. and Kawasaki Heavy Industries Ltd. of Japan and signed in late August 2003.
· The EPC contract for the construction of a diesel-generated power plant to be built by Wartsila Oy Finland with a capacity of 6 x 17 MW. The EPC contract was signed November 14, 2003.
White & Case partner Margaret B. Cole led the team advising on the bond issue, with support from associates Lim Sin Teck and Connie Yang. Partner Brian M. Miller advised on and associate Tan Lian Yok negotiated the EPC contracts. All the lawyers are based in the Singapore office of White & Case.
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“Since this transaction is one of the few financings for major projects to take place outside the oil and gas sector in Indonesia in recent years, it represents a significant step forward for PT Antam and the Indonesian economy as a whole,” said Ms. Cole.
Funding for the FeNi III project, with a total cost estimated by PT Antam of US$320-330 million, is financed by proceeds from the September bond issue, a US$60 million bilateral loan from Bank Central Asia (BCA) and the company’s internal cash. Construction will last 28 months and FeNi III is expected to start commercial operation in the first quarter of 2006.
About White & Case
Founded in 1901 in New York, White & Case LLP is one of the world’s leading international law firms, consisting of more than 1,700 lawyers based in 38 offices in 26 countries. White & Case lawyers concentrate on cross-border corporate and financial transactions and dispute resolution.
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The Singapore office of White & Case has been at the forefront of international project finance and law for nearly two decades. The firm has been behind seminal developments such as the creation of the trustee borrowing structure and the creation of vital documents for power projects in Indonesia, India and the Philippines.
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Contact: Frank Pizzurro
Communications and Media Relations Manager, Asia Pacific
Tel: (65) 6347-1547
Email: fpizzurro@whitecase.com
