As the winner of the tender for Government infrastructure project, the Palapa Ring Project East Package, linking all of Indonesia by fiber optic, PT Palapa Timur Telematika (“PTT”) has obtained syndicated loan facilities in the amount of Rp 4,004,000,000,000 from a bank syndicate of 5 banks, led by PT Bank Negara Indonesia (Persero) Tbk. (BNI). The bank syndicate also included Bank ICBC Indonesia, Papua Bank, Bank Sulselbar, and Bank Maluku Malut (“Syndicated Facility Agreement”). The Syndicated Facility Agreement were guaranteed by the Indonesian Infrastructure Underwriter company, PT Penjaminan Infrastruktur Indonesia (Persero).
In this major transaction, HPRP was appointed to provide comprehensive legal assistance to the banks in the syndicate in the whole financing process. Led by Partner, Chadri Jurnalis, who was assisted by Michael Kaihatu (Senior Associate), Dinda Karina (Senior Associate), Osha Adyancha (Associate), Reza Alfiandri (Associate), Aditya Parlindungan Sitanggang (Associate), and Sari Veratiwi (Associate), HPRP assisted the syndicated banks in preparing all documents needed in the transaction, including agreement documents, security documents and other supporting documents, as well as arranging the negotiations, legal due diligence, regulatory compliance, and finalization of the facility. HPRP was also requested by the Banks to review (i) Perjanjian Kerjasama (the cooperation agreement) entered by PTT and Ministry of Communication and Informatics of the Republic of Indonesia, (ii) Perjanjian Penjaminan (the guarantee) provided by PT Penjaminan Infrastruktur Indonesia (Persero) (PII) to PTT, and (iii) the Project Agreements e.g., EPC, Maintenance and Operating Agreement, to assess whether these Agreements will be in line with and not be inconsistent with the Syndicated Facility Agreement.
The Palapa Ring Project East Package is one of the fiber optic network constructions for the 8,454 km national broadband telecommunications system backbone as an information highway connecting all cities in commercially unprofitable areas. The development will reach 35 cities in Nusa Tenggara Timur, Maluku, and West Papua to inland Papua. This is one of the government’s efforts to accelerate development and economic equality in all regions of Indonesia.
HPRP’s financial services practice group has been successfully assisting in many financial transactions, conventional and sharia, local and international. Recently the team has assisted in various transactions related to natural resources, infrastructure and real property. Please contact firstname.lastname@example.org or email@example.com for further details.