HHP behind Asia’s first sustainability bond

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Sustainablity-bond
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Hadiputranto, Hadinoto & Partners (HHP Law Firm), a member firm of Baker McKenzie in Indonesia, advised BNP Paribas (BNPP) and ADM Capital on the structuring, formation and closing of the US$95 million sustainability bond, the first of its kind in Asia and the first sustainability bond in ASEAN.

The multi-tranche sustainability bond will help finance sustainable natural rubber plantations on heavily degraded land in Jambi and East Kalimantan provinces in Indonesia, and was arranged by BNPP, issued by TLFF I, with proceeds on-lent to Royal Lestari Utama (RLU) and its subsidiaries, an Indonesian joint venture between France’s Michelin and Satria Cemerlang (an associated company of Indonesia’s Barito Pacific Group).

The loan to RLU will be managed by ADM Capital and is partially guaranteed by the US Agency for International Development (USAID). The project also involves a collaboration with the World Wildlife Fund, which has worked with Michelin and RLU to set aside remaining high carbon stock and high carbon value forest in the RLU concessions, as well as critical wildlife conservation and riparian areas.

Led by Norman Bissett, the HHP team advised BNPP and ADM Capital on due diligence and structuring matters, reviewing agreements from an Indonesian law perspective, as well as assisting with the preparation of the information prospectus and closing. Linklaters’ Hong Kong and Singapore teams acted as international counsel on the transaction for BNP/ADM Capital, while RLU was represented by AHP, Jakarta.

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