Makarim & Taira S. Represents a $300 Million Bond
February, 2010 - Jakarta, Indonesia
Makarim & Taira S. has represented PT Cikarang Listrindo, an Indonesian power company, in issuing USD 300,000,000 9.25% Senior Notes due 2015 through a Netherlands subsidiary. Barclays Capital and Credit Suisse were acting as the Initial Purchasers for this offshore bond deal. This bond deal is one of the first offshore bond deals closed in early 2010 and is also notable in that it is one of the first in Indonesia to use two SPVs in order to be more tax effective. The bond issuance was also complex and challenging from an Indonesian legal perspective due to the promulgation of many new laws by the Indonesian Government in 2009 including a new Electricity Law, new Environmental Law and new Law on the National Language. Recent conflicting Indonesian court decisions with regard to the structure of an offshore bonds issuance also added to the complexity of the deal. Makarim's team of lawyers for this deal was led by Senior Foreign Legal Consultant Gregory Ranslam and partners Rudy Kusmanto and Rahayuningsih Hoed.
