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As one of the largest law firms in Indonesia, Hadiputranto Hadinoto & Partners' (HHP) banking practice acts for many of the leading financial institutions and listed companies. They advise on a number of areas relating to banking and finance, namely commercial loans, syndicated loans, security arrangements and Islamic financing.

The strength of the banking and finance practice crosses over into restructuring and insolvency matters. The current economic crisis has meant Indonesian companies have undertaken various forms of corporate restructuring and the firm has been involved in many notable cases.

Deals
It was another busy year for HHP's banking team marked by some notable transactions that cemented its position in tier one.

One example saw the team handle the largest private sector Islamic finance deal to date in Indonesia. Here they represented the murabaha (deferred sale) finance parties in relation to a $1.2 billion secured shariah loan transaction by mobile cellular operator Natrindo Telepon Selular. The deal was particularly significant not only for the loan amount, but also because it brought together a number of parties who had not participated in Islamic deals before and was the first Islamic finance deal supported by the China Development Bank.

Indri Pramitaswari Guritno had a particularly active year including advising Saptaindra Sejati on the $400 million senior loan facility granted from a syndicate of 12 banks to refinance the existing debt and for capital expenditure. She also advised Standard Chartered in a $75 million senior secured credit facility to Rajawali Citra Televisi Indonesia, which is Indonesia's first privately owned television station. The deal was completed in less than one month.

In one of the biggest corporate restructuring cases in the country to date, the firm represented Credit Suisse International, one of many creditors, in the Arpeni Pratama Ocean Line (APOL) insolvency. Initially, the court granted a bankruptcy ruling against APOL, but this was later changed to a suspension of payment ruling on request by another creditor. On behalf of Credit Suisse International, the firm managed to recover over $4 million.

Hadiputranto Hadinoto & Partners' (HHP) capital market team has been involved in some of the most significant transactions in the market in the last year. As one of the largest firms in Indonesia the capital markets team has lawyers with experience of domestic and international offerings.

In founding partner Sri Indrastuti Hadiputranto and Rambun Tjajo, the capital markets team is well versed in all aspects of securities related work and M&A. A client says: "I've worked with other top law firms in the past, but I think HHP offer a little bit more. We have developed an important strategic relationship." On their association with international law firm Baker & McKenzie, a client says: "Their international franchise is good for them and enables them to do a lot of cross border work."

Deals
2011 was a relatively quiet year for major equity and debt offerings, yet the firm was involved in several of the largest deals. One of the larger deals by value they advised Perusahaan Listrik Negara on its $2 billion Global MTN Program offered under Rule 144A/Reg S. In a similar deal the team acted for Medco Energi Internasional on a $150 million issue, the first under the new BAPEPAM-LK Regulation on Continuous Public Offering, and the first US dollar denominated in Indonesia under the regulation on the Public Offering of Debt Securities Denominated in Foreign Currency.

In other bond offerings they represented one of Indonesia's largest state-owned banks Bank Negara Indonesia in its $500 million 4.125% notes issue due in 2017.

On the equity side, the team represented the underwriters and international selling agents in relation to ABM Investama's $232 million IPO.

The M&A team were involved in one of the largest M&A deals Indonesia in 2011 advised Recapital Group and Bakrie Group in relation to Vallar's $3 billion 75% acquisition of Berau Energy and 25% of Bumi Resources from Recapital Group and Bakrie Group, respectively. This deal would result in Bakrie Group owning 25% shareholding in Vallar after the acquisitions. Berau Energy and Bumi Resources would combine to become Indonesia's largest coal mining company by production and reserves.

In another substancial M&A deal the team represented Japanese insurance company Mitsui Sumitomo Insurance Company in its acquistion of a 50% stake in the life insurance unit of Sinar Mas. The value of the deal was just over $823 million and was one of the largest acquisitions by a Japanese life insurer.

Other deals include representing SCG Building Materials and SCG Distribution in their acquisition of five Indonesian cement manufacturing and distribution companies for $83 million deal.

Hadiputranto Hadinoto & Partners has a leading project finance team whose lawyers regularly advise on energy and infrastructure projects. Their work on power projects stands out with foreign legal consultants Norman Bissett and Luke Devine seen as the industry experts. "For the electricity sector they are the best in the business," says one client and another agrees: "Luke is up there with the best."

Deals
The firm completed a number of notable project finance deals last year, two of which were geothermal power plants. Backing up Luke Devine's reputation as an expert in this field he represented a consortium of international power and energy companies in the development and financing of a 330MW geothermal power project in North Sumatra. This was a $1billion deal and the first greenfield geothermal project since the Asian financial crisis. In a similar deal, the firm represented an international consortium to develop a $600 million 220MW geothermal power project in West Sumatra. As part of the deal the firm had to negotiate the terms of the power purchase agreement with the state-owned electricity company, PLN. It was also the first project to receive the Business Viability Guarantee from the Ministry of Finance.

Other notable deals included representing the sponsors of a power purchase agreement and coal supply agreement for a mine mouth IPP (independent power producer) project, and advising Kodeco Energy on the extension and negotiation of the West Madura Production Sharing Contract, which supplies gas to Surabaya.