Milbank acts on Indonesian coal deal

Milbank Tweed Hadley & McCloy has represented Indonesian private coal company PT Ilthabi Bara Utama (IBU) on a $135m (£66.49m) privately arranged equity-linked note to finance the development of a coal mine in East Kalimantan.

Partner David Zemans and senior associate Jacqueline Chan led the team that negotiated and structured the transaction.

Merrill Lynch acted as lead arranger on the deal, under advice from Latham & Watkins.

According to Zemans, going down the privately-arranged funding route provided a viable alternative to project financing, which is typically not available for start-up companies and takes longer to put in place.