Latham Advises Aster Chemicals on US$1 Billion Sustainability-Linked Debt Financing

Latham & Watkins has advised Aster Chemicals and Energy Pte. Ltd. (ACE) on its US$1 billion sustainability-linked debt financing from a consortium of global banks and credit funds, comprising a US$700 million initial facility with an up to US$300 million greenshoe option. The debt financing was arranged by DBS and OCBC as the mandated lead arrangers, underwriters, and bookrunners and coordinating banks, with lenders including Clifford Capital, Indonesia Eximbank, Bangkok Bank PCL, Bank Mandiri, Bank Rakyat Indonesia, Standard Chartered Bank, and First Abu Dhabi Bank.

ACE, which is indirectly majority-owned and operated by Chandra Asri and minority-owned by Glencore by a joint venture through their respective subsidiary companies, comprises a crude oil refinery, an ethylene cracker on Bukom island, and downstream chemical assets on Jurong Island.

The loan incorporates certain sustainability-linked adjustments and will support the general corporate purposes of ACE.

Latham also previously advised Chandra Asri on the initial formation of the joint venture with Glencore and the acquisition of ACE from Shell Singapore.

The Latham team was led by Singapore partners Timothy Hia and Chuan Wei Kong, with associate Rebecca Han.