Herbert Smith Freehills and Hiswara Bunjamin & Tandjung advised Indonesia Investment Authority in $1.3 Billion Toll Road Deal
Herbert Smith Freehills and associated firm Hiswara Bunjamin & Tandjung have provided counsel to the Indonesia Investment
Herbert Smith Freehills and Hiswara Bunjamin & Tandjung advised Indonesia Investment Authority in $1.3 Billion Toll Road Deal Herbert Smith Freehills and associated firm Hiswara Bunjamin & Tandjung (HBT) have provided counsel to the Indonesia Investment Authority (INA) regarding its investment in the Bakauheni-Terbanggi Besar and Medan-Binjai toll roads located in North and...
Herbert Smith Freehills and Hiswara Bunjamin & Tandjung advised Indonesia Investment Authority in $1.3 Billion Toll Road Deal
Herbert Smith Freehills and associated firm Hiswara Bunjamin & Tandjung (HBT) have provided counsel to the Indonesia Investment Authority (INA) regarding its investment in the Bakauheni-Terbanggi Besar and Medan-Binjai toll roads located in North and South Sumatera. The investment involves a total enterprise value of approximately $1.3 billion.
INA, Indonesia's sovereign wealth fund, operates with the primary objective of fostering investment to promote the country's sustainable development while simultaneously building wealth for future generations.
"INA's investment in these toll roads reflects its commitment to making a real difference for Indonesia and is critical to the Indonesian Government’s asset recycling strategy," said Matthew Goerke, HBT senior international counsel, and Herbert Smith Freehills partner.
"Infrastructure such as these roads enables trade, powers businesses, connects workers to their jobs, and creates opportunities for Indonesian communities," Goerke added.
The transaction was executed in close collaboration with PT Hutama Karya (Persero), a state-owned infrastructure developer in Indonesia. Additionally, it involved a substantial refinancing effort, with Bank Rakyat Indonesia providing new financing to special purpose vehicles dedicated to supporting the project.
The recent deal marks the second completed M&A toll road transaction for INA, complementing its investment collaboration with Waskita Karya for two sections of the Trans Java Toll Road. Furthermore, this transaction represents the 10th Indonesian toll road deal on which Herbert Smith Freehills and Hiswara Bunjamin & Tandjung have provided their expert counsel in the past three years.
In addition to their involvement in toll road projects, the two firms are actively advising on other significant infrastructure ventures, such as the DP World and INA alliance concerning their investment in the Belawan New International Container Terminal.
The team responsible for advising INA was spearheaded by Matthew Goerke and HBT partner Dhani Maulana M Pattinggi. Leading the refinancing efforts was finance partner Tjahjadi Bunjamin. The Jakarta team also included senior associates Aditya Rachman and Giovanna Nicky R, along with associates Adhitya Nugraha, Fauzi Rohmat, Gregorius Wibisono, Neduro Nainggolan, and Deavina Christy.
For support in Singapore, Adrian Wong, director at Prolegis LLC and head of projects for the Herbert Smith Freehills Prolegis Formal Law Alliance, played a vital role. Additionally, senior associate Ken Ooi and associate Audrey Siew also assisted as part of the Singapore team.