Transaction Description

Acting as financial advisor, Cofarco provided financial counsel to an independent Indonesian E&P junior company to raise debt to fund the acquisition and ongoing capex programme of a mature producing Oil & Gas asset in Indonesia. Debt placement will include a committed facility to serve as a guarantee for the capex programme and a working capital line to cover initial costs. The company, with a strong presence in local shipping and oil & gas services, aspires to become a regional diversified upstream player through investing in hight quality, proven assets.

Cofarco Responsibilities

Cofarco, in co-ordination with the Indonesian E&P company’ team and relevant external advisors, was responsible for:

• Preparing a teaser for the contemplated asset acquisition;
• Assisting in preparing a financial model and undertaking sensitivity testing of the financial model;
• Preparing a presentation of the financial model results as part of the due diligence process;
• Finding debt funding sources and targeting suitable specialised lenders;
• Advising on terms and conditions of the share purchase agreement for acquisition of the asset, co-ordinating the legal documentation with the designated legal counsel until closing.