A cross-office team from Baker McKenzie assisted PT Perusahaan Listrik Negara (Persero) ("PLN") in successfully securing a USD 750 million (with green shoe option) syndicated loan with eight international and multinational banks acting as mandated lead arrangers and bookrunners to support the company's green projects and programs implementation.

The mandated lead arrangers and bookrunners of this deal comprise Bank of China, China Construction Bank, CIMB/PT Bank CIMB Niaga Tbk, DBS Bank, PT Bank Mizuho Indonesia/Mizuho Bank Ltd, OCBC/PT Bank OCBC NISP Tbk, Sumitomo Mitsui Banking Corporation/PT Bank BTPN Tbk, and United Overseas Bank (UOB).

This transaction, which represents PLN's first commercial syndicated green loan, follows closely from the USD 500 million green financing facility with a guarantee from the World Bank's Multilateral Investment Agency (MIGA), on which the Firm also advised. The MIGA-backed financing facility was the first green loan obtained by PLN and by any state-owned enterprises in Indonesia.

The transaction was led by Partner Indri Pramitaswari (Mita) Guritno and Associate Partner Agung Wijaya at Indonesian member firm, HHP Law Firm, and Principal Kah Chin Chu at Singapore member firm, Baker McKenzie Wong & Leow. They were supported by Associates Nadzira Boenjamin in Jakarta and Jared Goh in Singapore.

Commenting on the deal, Mita said, "We are very pleased to have assisted our long-standing client PLN on another important transaction, which supports Indonesia's transition to a low-carbon economy. This deal plays to our strength in complex debt financing transaction, and our deep knowledge and experience in assisting companies with their energy transition projects and investments. We look forward to continuing to support PLN every step of the way as they continue their net-zero journey."

Kah Chin added, "We would like to congratulate PLN on this landmark syndicated green loan. With sustainability rapidly rising up the corporate agenda and economies racing to address climate change, the demand for green financing will no doubt grow further. This transaction exemplifies the role the private sector can play in creating a sustainable future."

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