Mayer Brown acted as the international legal advisor to the International Finance Corporation (IFC) on its investment in a US$830 million greenfield ammonia plant in Sulawesi, Indonesia, which achieved financial close this week.

Operated by Panca Amara Utama (PAU), the plant is one of the IFC’s largest greenfield projects in the last decade. It is funded through a US$512 million debt package consisting of a US$97 million IFC A loan and a US$415 million IFC B loan funded by ANZ, HSBC, Korea Development Bank, OCBC, Standard Chartered Bank, SMBC and United Overseas Bank. The IFC is also taking an equity position in PAU in the form of a convertible loan.

The project was led by Banking & Finance partners Nathan Dodd and Benjamin Thompson from Mayer Brown’s office in Singapore.

“This is a landmark deal in Indonesia. It is the first ammonia plant in Sulawesi and the only ammonia project in the region to specifically target the Asia Pacific market.” said Mr. Thompson.

Mr. Dodd further commented, “We are delighted to have been involved in this project. It is the first locally sponsored private ammonia plant in the country and the first major industrial development in East Indonesia that is aligned with the Indonesian government’s objective of developing the Sulawesi corridor.”