AC Energy Holdings, Inc., a wholly-owned subsidiary of Ayala Corporation, and its Indonesian joint venture partners have completed the acquisition of Chevron Corp.’s geothermal assets and operations in Indonesia
The Indonesia consortium consists of AC Energy (with 19.8% economic stake), Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd., and Electricity Generating Public Company Ltd. and the acquisition was made through their joint venture company, Star Energy Geothermal (Salak-Darajat) B.V.
The consortium was selected as the winning bidder of these assets after an extensive and highly competitive bid process held in 2016.
The assets have a combined capacity of 650 MW – enough to power about 3 million homes in Indonesia – and include the Darajat and Salak projects. The Salak project is one of the largest geothermal facilities in the world.
The lenders for the transaction were: Bangkok Bank Public Company Ltd., Bank of China Ltd., BPI Capital Corp., BDO Unibank Inc., DBS Bank Ltd., RCBC Capital Corp., Sumitomo Mitsui Banking Corp., Singapore Branch, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. The loans are supported by a multi-jurisdiction cross-border guarantee and security package.
The buyers were advised by Milbank, Tweed, Hadley & McCloy LLP. Milbank advised the mandated lead arrangers.
Mr. Zemans, Milbank's Asia Managing Partner, said:
“Milbank is delighted to have been able to work with this impressive Consortium and all of the financial institutions to help make this transaction a success. It was a very competitive process and the acquisition of these highly desirable assets will provide the Consortium with access to a steady and environmentally friendly source of energy in one of Asia’s fastest growing and most vibrant economies.”
The acquisition is the latest in a string of successful power, energy and natural resources transactions in Indonesia completed by Milbank’s team in Asia. Within the past six months alone the firm acted on four such deals, including the multi-billion dollar acquisition and related financings of a controlling stake in mining company PT Amman Mineral Nusa Tenggara (previously PT Newmont Nusa Tenggara), the financing of the 200 MW Kalsel coal-fired power plant, the financing of the 52 MW Hasang run-of-the-river hydro-electric power plant (Hasang HEPP), and the financing of the Supreme Energy Muara Laboh 80MW geothermal power project.