JERA Co., Inc. And Reliance Power Limited’s US$642 Million Project Financing

Clifford Chance has advised the leas counsel on the project financing.

Asian Development Bank, Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and commercial banks MUFG Bank, Ltd., Mizuho Bank, Ltd, Sumitomo Mitsui Banking Corporation and Société Générale S.A. acted as lead counsel on the development and US$642m project financing of a 718 MW (net) gas-fired thermal power generation project in Bangladesh sponsored by JERA Co., Inc. and Reliance Power Limited.

The project will be located in Meghnaghat, approximately 40km southeast of the capital city, Dhaka, and is scheduled to begin operations in 2022. On completion the plant will be the largest independent gas-fired power generation facility in Bangladesh. It is the first time that a Japanese sponsor has taken a leading role in the development of a Bangladeshi power project and the first time for JBIC and NEXI to provide project financing in Bangladesh.

Partner Nicholas Wong (Picture – Singapore) oversaw an integrated cross border team drawing upon Clifford Chance’s deep regional expertise, with partner Matthew Buchanan (Singapore) leading on the construction and procurement aspects of the project and partner Hans Menski (Tokyo) leading on the financing aspects, and also comprising partners Nadia Kalic (Sydney) and Ross Howard (Singapore), senior associates Michael Pallaras (Hong Kong) and Dominik Kepinski (Perth), associates Christine Yassa (Singapore) and Myles Sim (Singapore) and trainees Dominic Behar (Tokyo) and Emma Durrell (Perth).

Involved fees earner: Matthew Buchanan – Clifford Chance; Ross Howard – Clifford Chance; Nadia Kalic – Clifford Chance; Dominik Kepinski – Clifford Chance; Hans Menski – Clifford Chance; Michael Pallaras – Clifford Chance; Myles Sim – Clifford Chance; Nicholas Wong – Clifford Chance; Christine Yassa – Clifford Chance;

Law Firms: Clifford Chance;

Clients: Asian Development Bank; Japan Bank for International Cooperation – JBIC; Mizuho Bank; MUFG Bank, Ltd.; Nippon Export and Investment Insurance; Société Générale; Sumitomo Mitsui Banking Corporation;

Author: Michael Patrini