CMS has advised Affirma Capital, acting as manager of the KINETIK Affirma Capital Climate Transition Fund I (the Fund), on the acquisition of Bright Nusantara Energy, an Indonesian renewable energy platform operating utility-scale mini hydro and solar projects.
Bright Nusantara Energy currently operates 30 MW of hydro and solar projects, with a further 22 MW of near-term expansion projects and more than 200 MW in its development pipeline.
Affirma Capital has agreed to invest USD 35m for a 100% buyout of the platform. Through this investment, Affirma Capital will support the platform in expanding its portfolio, strengthening its operational capabilities and contributing to the build-out of reliable, lower-carbon power infrastructure across Indonesia.
The KINETIK Affirma Capital Climate Transition Fund I is a private equity vehicle raising US$200 million to support Indonesia's transition to a low-carbon economy. The acquisition of Bright Nusantara Energy represents the Fund’s first investment.
CMS (acting as Lead Counsel) together with Rifdaan, Novarazka & Prabowo (RNP – acting as Indonesian Counsel) provided comprehensive legal advice on all aspects of the transaction, including legal due diligence, advising on the transaction structure, key transaction documents, and W&I insurance arrangements.
Winston Mandrawa, Managing Director and Head of ASEAN for Affirma Capital, said: “We’re grateful to Gerald and the wider CMS team for their exceptional support throughout our debut investment of the KINETIK Affirma Capital Climate Transition Fund I. Their deep understanding of the commercial acumen and tireless dedication were instrumental in getting this deal across the line in a timely manner and satisfying our objectives.”
Gerald Licnachan, Partner at CMS, said: “We’re delighted to have advised Affirma Capital on this important transaction and the debut investment of the KINETIK Affirma Capital Climate Transition Fund I. The deal reflects significant investor interest in renewable energy opportunities in Indonesia and across Southeast Asia. We were pleased to support Affirma Capital in navigating the complex cross-border legal, regulatory and commercial considerations involved in achieving a successful outcome.”
The CMS team was led by Gerald Licnachan and included James Fisher, Sophie Tan, Molly Greenslade, and Tommi Barnes (Corporate).
