IFLR 1000
The Guide to the World's Leading Financial Law Firms

Managing partner Ahmad Fikri Assegaf is recognised as one of the country's most talented lawyers in banking and finance and capital markets. Ahmad and several other partners served as advisors to the Indonesian Bank Restructuring Agency in the wake of the Asian financial crisis and have considerable knowledge of banking regulations. "They are very knowledgeable and practical and they know what they are doing. They are usually my first point of contact if I need any advice." says one client.

"I have worked with other leading law firms before, but I think Assegaf Hamzah & Partners has a slight edge over them. They are value for money." says another.

Alongside Ahmad is partner Bono Daru Adji, who has also been praised for his work by many of the firm's leading clients.

Deals
The firm represented a number of corporate companies and banks in arranging and extending loan facilities. The clients were from the coal mining, property, petrochemical and air cargo sectors. Some of the deals were strategically significant with one example being a $150 million loan facility granted to Chandra Asri Petrochemical to build a butadiene plant in Banten, on Java island. This will reduce Indonesia's dependence on butadiene imports, which is used to produce synthetic rubber. In one of the larger deals the firm represented UOB and HSBC in a $300 million loan facility to a subsidiary of one of Indonesia's largest coal mining groups. This deal demonstrates continuing interest in the resource sector despite a fall in demand for commodities on the back of economic slowdown in China.

Assegaf Hamzah & Partners (AHP) continues to set a very high standard in the capital markets sector. The team has had a very busy year with many noteworthy transactions acting for the Indonesian Government and listed companies.

"AHP is our choice of firm. They are the go-to partner for all our capital markets work," notes a leading investment banking client.

Under the leadership of Fikri Assegaf the firm has maintained its position at the top of the market. "Fikri handled both of our deals, he is very knowledgeable and knows what needs to be done," says another client. Bono Daru Adji's contribution to the team certainly does not go unnoticed with many clients praising his abilities: "Very knowledgeable, good communication and excellent response. I feel very comfortable working with him," notes another.

Deals
It has been a very important year for the Government of Indonesia and the capital markets due to its upgrade of sovereign debt ratings. AHP played a major role in several high profile government bond and medium term note issues. In the largest deal by value, they represented UBS, Deutsche Bank and JPMorgan as joint lead managers in Indonesia's $9 billion global MTN offering. Other deals include the state's $1 billion sovereign sukuk ijarah (asset backed bond) and a $2.5 billion dual tranche notes offer. The latter was significant because it was the first government offering since the ratings upgrade.

Elsewhere, the firm assisted Garuda Airlines in its $382 million global IPO issued in line with US Rule 144A/Reg S, which was the first IPO by an Indonesian airline. The most challenging deal because of the number of civil and common law jurisdictions involved saw the team assist Citi Group, Goldman Sachs, Standard Chartered and UBS in an exchange offer of existing senior notes and international issuance of new senior notes by Indo Integrated Energy to the value of $300 million.

M&A activity has been active across all sectors, though the banking sector has been a little subdued due to new ownership limitations. Notable deals include advising TH Plantations on its acquisition of Persada Kencana Prima for $7.5 million. This deal is an example of foreign companies establishing a foothold in Indonesia's expanding oil plantation industry. In another deal they advised Baring Private Equity Asia on its acquisition of a 41.65% stake in Cardig Air Services from Menara Nusantara through a call option.

In the telecoms and media sector the team assisted Singapore's i2i in its takeover of PT Metrotech Jaya Komunika Indonesia, a company that produces Nexian cell phones.

Although not as well known for its project finance work as it is for its capital markets practice Assegaf Hamzah nevertheless does provide project finance advice in three principal areas; infrastructure, mining and forestry and plantation.

As part of the government's 10,000MW energy sector development program, the firm has recently been involved in many project finance and infrastructure projects. They are currently engaged in ongoing representations on a tolled expressway project and several geothermal and hydro-power plant projects in Indonesia.

Deals
With the country suffering from lack of adequate infrastructure it is not surprising to see numerous projects being developed. During the past year the firm has represented government agencies, local government and private companies in power, water and road toll projects.

In one of the larger deals the firm assisted Supreme Energy Indonesia in establishing joint ventures with international power companies and securing the financing for the development of three geothermal power plants. This $200 million project was one of the Indonesian government's 10,000MW power program. Other notable deals saw the firm advise China-based Guangdong Power Engineering on a procurement contract for a new power plant in Indonesia, and Aetra Air Jakarta's construction and concession contract for a 267km water pipeline project with the Tangerang Municipality.