Baker McKenzie's member firms Baker McKenzie Wong & Leow (in Singapore) and HHP Law Firm (in Jakarta) advised the bank group on a USD 700 million sustainability-linked syndicated term loan facility for PT Sarana Multi Infrastruktur (Persero) ("PT SMI"), a state-owned enterprise under Indonesia's Ministry of Finance. The MLABs include MUFG Bank, Ltd., United Overseas Bank, Bank of China, CTBC Bank, DBS Bank, Mizuho Bank.

The facility is PT SMI's first-ever sustainability-linked loan which features concrete performance targets that are in line with its ESG commitment. It received strong interest from investors during syndication, resulting in an oversubscription with aggregate commitments of approximately USD 1.8 billion.

The cross-border Baker McKenzie team was led by Chu Kah Chin, Banking & Finance Principal at Baker McKenzie Wong & Leow, who was supported by Associate Lim Yin Li, and the HHP team was led by Mita Guritno, the Banking and Finance Senior Partner at HHP Law Firm and supported by Associate Partner Agung Wijaya.

Mita commented, "We are pleased to have played an integral role in this pioneering deal to support Indonesia's sustainable financing journey and efforts. The dynamic collaboration within our cross-border team underscores our commitment in providing unparalleled advice that is underpinned by deep global sector expertise and first-rate market knowledge."

Kah Chin added, "The successful completion of the transaction with overwhelming investor interest is a clear testament that the transaction will pave way for more ESG deals in the Indonesian loan market and our Firm is well positioned to meet the growing public and private sector demand for sustainable financing."

The transaction adds to Baker McKenzie's growing list of sustainable finance transactions in Indonesia and globally. This includes advising PT Perusahaan Listrik Negara (Persero) ("PLN") in successfully closing a USD 750 million syndicated commercial green loan facility.

Baker McKenzie and its member firms in Asia-Pacific were named "ESG Firm of the Year" and ESG and Sustainability Law Firm of the Year" at this year's Asia Legal Awards and ALB SE Asia Law Awards respectively. Last month, the Firm was one of the first organizations to join the UN Global Compact's Forward Faster Initiative which aims to accelerate private sector action at the pace and scale needed to deliver on the UN's 17 Sustainable Development Goals (SDGs) and meet the 2030 Agenda.

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