Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Milbank is known for its increasing prominence in working on projects that involve PRC energy companies. “Milbank has really been a great growth story,” says a partner at a rival firm. “Its energy practice had a fantastic year in 2010.”

Milbank is often seen working with companies on capital markets transactions or with Chinese energy companies on outbound mergers and acquisitions. Veteran partner Anthony Root manages the Beijing and Shanghai offices and heads the Milbank corporate practice in greater China and Asia.

Milbank Tweed Hadley & McCloy’s world class project finance practice complements its banking practice and the firm is often found on the lender side in complex financing transactions. Headed up by veterans Gary Wigmore and Mark Plenderleith, Milbank counts BNP Paribas, JBIC and Mizuho as some of its key clients.

Some recent matters of note saw Plenderleith involved in the project development and limited recourse financing of the Caserones mining project in Chile, where he acted as counsel to the lending syndicate. Meanwhile, Wigmore represented Development Bank of Japan in the structured financing for the purchase of polysilica by Sharp Corporation from Hemlock Semiconductor Corporation.

The energy and natural resources practice of Milbank focuses on high end financings and is supported by the capital markets practice when needed. One high profile transaction the firm is working on is advising a syndicate of lenders on the project development and limited recourse financing of the Caserones mining project in Chile. This is the first multi-billion dollar mining transaction in South America that is wholly owned and developed by a consortium of Japanese companies.

In addition to maintaining a strong presence on lending work, Milbank’s Tokyo office has received more instructions on the borrower side in the past year and the team expanded by five to handle the increased work flow. Star practitioners Gary Wigmore and Mark Plenderleith head the group and the duo look after Asia Pacific and Japan matters respectively.

Under the guidance of managing partner David Zemans, and partners James Murray, Naomi Ishikawa and Giles Kennedy, Milbank continues to impress in spite of its comparatively small size.

This year, Zemans headed a team advising PT Harum Energy regarding its IPO, which is reportedly the biggest by an Indonesian coal mining company in the last two years. Underwritten by Goldman Sachs and Deutsche Bank, the IPO raised a total of Rp.2.86 trillion.

In October 2010, the firm also assisted the Democratic Socialist Republic of Sri Lanka in its third sovereign bond offering. Associates David Wertime, Adrian Yeo and Michael Lu and Hong Kong partner Joshua Zimmerman advised the country in its US$1 billion offering of 6.25% bonds due 2020.

In the restructuring space, Zemans advised the creditors to Darma Henwa, and UOB Bank, on the restructuring of US$205 million in a facilities agreement from December 2006.

The firm’s project finance team was involved in two highlight deals this year; the financing for Jurong Aromatics’ greenfield development project and Hongsa Power’s power plant in Laos.

Partner James Murray represented Export Import Bank of Korea, Korea Trade Insurance, and other commercial bank lenders to finance US$1.6 billion for Jurong Aromatics’ development.

The financing scheme for Hongsa Power represents Thailand’s largest project financing syndication to date. Partner Karen Wong represented Hongsa Power in the negotiation and structure of the financing, which includes an approximately US$2.71 billion debt facility for a US$3.71 billion plant.

Under the leadership of respected partners David Zemans, Jacqueline Chan and Ee-Ing Ong, Milbank has retained its standing in the M&A and private equity space.

Demonstrating its increasing efforts in the energy sector, Zemans, Chan and Ong led a team advising Indonesian energy company Samudra Energy in a complicated M&A transaction worth US$35.5 million. The company acquired a 20% interest in a production sharing contract for a production block in East Java. The firm also assisted Samudra Energy in obtaining a US$35.5 million senior secured, revolving and amortising borrowing base loan facility.

Zemans, along with partners Giles Kennedy and Tim Mackey, also represented Indies Capital Partners regarding refinancing a US$17 million bridge facility. The funds created by the refinancing will then be used for the acquisition of Raja Kutai Makmur Baru, an Indonesian coal mine.

“Milbank’s energy and natural resources team is among the best, with an innovative legal perspective that is very client friendly and quick to execute,” says one client.

Headed up by managing partner David Zemans, and partners James Murray, Giles Kennedy and Naomi Ishikawa, the team was involved on a number of high profile transactions this year, with particular focus on Indonesian project finance.

One noteworthy deal saw Zemans, Kennedy and Ishikawa lead a team advising Indonesian thermal coal miner Harum Energy and its core selling shareholder on its US$320 million Indonesian Stock Exchange IPO. The deal marked the biggest IPO by an Indonesian coal mining company in the past two years.

A firm team, led by Zemans, also represented Standard Chartered Bank on its US$140 million secured loan to Ibris Agri, the owner of palm oil and sugar plantations in Indonesia.

The team has also been active in the mining space this year, advising on the US$2.71 billion Hongsa Mine-Mouth Power Project as well as a US$457 million finance acquisition by Aston of the Maules Creek coal project in New South Wales, Australia from Rio Tinto.

Zemans, Melissa Lewis and Katie Taylor are deemed “an excellent team of professionals” by one peer.

Tim Mackey is also a regular contributor in this space.