Dentons HPRP, a leading law firm in Indonesia, has successfully assisted PT Krakatau POSCO's International Notes Offering. In a landmark stride within the steel industry, PT Krakatau POSCO (“PTKP”), a joint venture between PT Krakatau Steel (Persero) Tbk. and POSCO, one of the world's foremost fully-integrated steel producers originated from South Korea, recently concluded a significant global offering of unsecured notes, raising a total nominal value of US$700,000,000 or equivalent to Rp11,462,220,000,000.
The allocation of proceeds from this issuance is projected to fortify PTKP's operational capabilities, spanning from acquisitions of equipment, technological advancements to the expansion of its workforce. Partially, the issuance of Notes is also used to refinance several of its existing loans. These strategic maneuvers exemplify PTKP’s commitment to sustainable growth in the competitive steel market.
Notably, the notes were sold outside the United States under Regulation S of the U.S. Securities Act of 1933 and subsequently listed on the Singapore Exchange Securities Trading Limited (SGX-ST), enhancing PTKP's global visibility and accessibility to investors.
Dentons HPRP's role as local legal counsel to the issuer was instrumental throughout the transaction process. Collaborating closely with the local counsel of banks acting as initial purchasers, Dentons HPRP facilitated the construction of the offering circular, preparation of transactional documents, providing comprehensive advice on all Indonesian law-related aspects for the successful closure of the transaction.
What sets this transaction apart is the unique approach to legal representation arrangement. Unlike conventional global offerings of Indonesian company that typically engage legal counsel having its competence in English law in either Singapore or Hong Kong, PTKP and its counterparts opted for a different pathway. The parties involved enlisted law firms from their respective originating countries – South Korea and Indonesia, highlighting the importance of local familiarity and expertise in a cross-border outlook, aligning seamlessly with Dentons global’s 'Local Expertise, Global Insight' commitment.
Moreover, this pioneering approach not only expedited the transaction process but also ensured strict adherence to local regulations, fostering a sense of trust and confidence among stakeholders. It sets a precedent for future international transactions involving joint ventures in Indonesia and their parent companies abroad, potentially serving as a blueprint for similar ventures in the future.
At the core of this success lies Dentons HPRP's dedicated capital market team. Led by Partners Erwin Kurnia Winenda and Rio Febrianus Pasaribu, with Rafi Andiandra Wardhana as Senior Associate, supported by Fremi Rovi Raturandang, Beatrix Deviana Mukin, Raisha P. Diamar, and Pasha Soulaiman Kesumanegara, as Associates.
For more information about our services, please contact the Partners listed under key contacts.
Redefining possibilities. Together, everywhere. For more information visit dentons.com
heading