Establishing Sembcorp's first Power Plant Project in Myanmar
Clifford Capital provided a mix of fixed and floating rate senior secured term loans for Sembcorp Utilities’ 225MW gas-fired power plant in Myingyan, Myanmar, in what is the first internationally competitively tendered and banked power project in Myanmar. This is a landmark transaction for Myanmar as it establishes a set of benchmark-setting bankable project documents which will form the precedent for future independent power project financings in the country.
The build-operate-transfer project was awarded after an international bidding process called by the Government of Myanmar, and advised by International Finance Corporation (“IFC”) of the World Bank Group. Sembcorp will have an 100% stake in this project. Expected to be completed in 2018, the Project will supply power under a 22-year power purchase agreement (“PPA”). The Project was financed via a multi-tranche project financing comprising commercial loans from Clifford Capital and other commercial banks under partial risk guarantees from the from the Asian Development Bank (“ADB”) and the Multilateral Investment Guarantee Agency (“MIGA”), direct loans from ADB, Asian Infrastructure Investment Bank (“AIIB”) and IFC, as well as B-loans from ADB and IFC.
Clifford Capital played a pivotal role in coordinating the development of the pre-tender and post-tender financing structure and led the legal due-diligence for the Lenders. As Documentation Bank, Clifford Capital led the structuring and negotiation of the financing documents on behalf of the Lenders. Clifford Capital also advised on the bankability and led the lender-side inputs into the key Project Agreements that included the PPA and the Build-Own-Operate Transfer Agreement.