Logie Group offers the experience of
Andrew Kinloch
2003 to date: Hong Kong - Managing Director of Logie Group Limited
Andrew has just been appointed (in joint venture with a Singapore - based financial advisory boutique, an Australian legal practice and a global engineering firm) to advise Bappenas, the Indonesian planning ministry, on a fresh water project in Indonesia. The project is one of several being used to establish best practice and which subsequent projects can then replicate as the government takes the often difficult decisions necessary to establish policy in the sector.
In 2006 - 7, Andrew advised the Indonesian Ministry of Finance on that country's various infrastructure plans which call for an ambitious $25 billion to be invested over the next several years. These include $12 billion to be spent on 10GW of coal fired power plant and associated transmission to be built for PLN (the state owned electricity utility) under its Fast Track programme;and up to $3 billion of capacity from Independent Power Producers. The MOF supports all of PLN's business via the Public Service Obligation (PSO) subsidy; and guarantees the Fast Track programme. Other infrastructure includes toll roads and urban mass transit in the medium term. Andrew's role was to assess the nature and extent of government support for each such project and advise on the suitability of the terms and conditions proposed for each financing. This included consideration of how much risk should be transferred to the private sector and whether the government was prepared to pay for this. On the power programme alone, issues include fuel supply arrangements, fuel mix policy, equipment procurement mechanisms, cost of the PSO subsidy, assessment of value for money and how best to sell the story of Indonesia's new found pragmatism to an investor and financier community which is still cautious on its ability to deliver such projects on a sustainable basis.
PLN Java Bali grid
In 2004 - 5, Andrew acted as an expert witness for Fraport, operator of Frankfurt airport, on its $500 million arbitration case with the Philippines government re Manila airport under the World Bank’s ICSID convention. In that time, he submitted four reports totalling 20,000+ words. He examined how the concession was originally let and how it was subsequently amended. He compared its terms to both other infrastructure in the Philippines and to other airport terminals elsewhere. The panel's initial decision is currently being appealed.
In 2005 / 6, Andrew acted as interim CEO for a company looking to raise $40 million for investment in projects to reduce greenhouse gas emissions and thus earn carbon credits under the U.N.'s Kyoto protocol. Priority technologies were methane from landfill and PFCs from aluminium smelters. Target countries were China, the Philippines, Malaysia and Thailand. He stepped down from this business in Feb 06.
He writes and runs the semi-annual Asia Project Finance workshop for Euromoney. He also writes and runs (in conjunction with Lovells, the leading international legal practice) three training programmes on Project Finance (and soon more on Public Private Partnerships) for the Asian Development Bank in furtherance of its Strategy 2020 which calls for a significant shift in emphasis towards private sector lending and investing.
Andrew has recently been approached to advise a major regional bank on its specialised lending strategy for the region. He is currently working with three companies looking to raise funds, all in the mining sector. He is pitching for a number of public and private sector advisory mandates.
1998 – 2002: Hong Kong - Managing Director and Head of Structured Finance, Asia Pacific at WestLB
Structured Finance consisted of Lead Arranging a wide variety of value - added lending including project finance, export finance and corporate finance in the fields of
- energy including power, oil and gas and petrochemicals;
- fixed line, mobile and submarine cable telecoms;
- infrastructure including ports, water, airports, hotels, road, rail and logistics;
- metals and mining;
- aircraft leasing;
- leveraged finance, i.e. LBO / MBO in various industries for private equity houses and listed companies.
In its largest market sector, project finance, the bank consistently ranked in the top 5 globally by volume of deals arranged.
Andrew ran both the region and the HK team within the region. Teams in Sydney and Tokyo, plus a representative in Mumbai, reported into him.
Despite at times difficult markets, he reorganised the business and grew it from a headcount of 22 to 30. From 1998, SF Asia Pacific annual revenues grew at 21% compounded annual growth rate ("CAGR"), ultimately exceeding €30 mio. Similarly, result before tax grew at 17% CAGR, ultimately exceeding €18 million and beating budget in every year. The loan book exceeded (a clean) €2.5 billion.
Signing ceremony, Asia Container Terminals, Hong Kong
He achieved this by focusing the teams on Lead Arranger roles and on Deals of the Year (e.g. Shell / CNOOC’s petrochemicals plant in Nanhai, China; Tradeport and Asia Container Terminals in HK, Manila North Tollroad in the Philippines, Yallourn Power in Australia); pioneering markets such as the Japanese Operating Lease (e.g. Scandinavian Airlines and Air N.Z.) where the team also sourced equity; and introducing new business lines such as leveraged finance.
Raising of credit standards was key: he approved all credit applications in the region and spent perhaps 20% of his time on these. He also committed resources to workouts such that provisions were able to be subsequently released.
He overhauled marketing and management information flows. He also introduced various HR initiatives such as technical and skills training as well as short and long term secondments for fast track personnel.
He was instrumental in purchasing a significant stake in the only Asia - based aircraft lessor, Singapore Aircraft Leasing Enterprise (now Bank of China Aviation), and acted as an Alternate Director on its board. Even immediately after the events of September 11, 2001, this business met budget and contributed to the synergies envisaged between it and the bank. It then grew substantially, both in scale and earnings, justifying the purchase decision. The business was subsequently sold in 2006 to Bank of China at a considerable profit.
Inter alia, he set strategy; led the marketing / execution; approved all credit submissions; and approved new hires / remuneration. He reported to the Global Head of Structured Finance; and sat on the global Structured Finance management committee as well as the bank-wide Asia Pacific regional management committee.
1990 – 1998: London - Project Finance IBJ / Mizuho and UBS
Barking Power Station, UK (left) and autoclaves at Lihir Gold, Papua New Guinea (right)
From 1994 – 98, he was deputy head of the project finance team for UBS covering all sectors. From 1990 – 94, he had responsibility for the energy and infrastructure (including Public Private Partnership) project finance businesses at IBJ (now Mizuho). Both banks were significant players at this time and he led various Deals of the Year for each. Power plants included Barking, Keadby, Teesside and NIGen in the U.K. and api Energia in Italy. Mines included Rio Tinto’s Lihir Gold in Papua New Guinea.
1987 – 1990: Sydney - Project and Structured Finance Advisory at Westpac
He set up the new product development team which coordinated bank - wide initiatives on target customers via brainstorming sessions; and which acted as a disciplinary function for all new products being marketed by the group. He also developed / ran a variety of tax efficient structures.
1978 – 1987: London / HK / Sydney – Accounting Firms KPMG and PWC
He qualified with KPMG in London then moved first with them to HK and then onto PWC in Sydney. Clients included BAe Systems and Pinewood film studios in the U.K.; CLP and Hongkong Land in Hong Kong; and Wyndham Estate Wines in Australia.
Andrew Kinloch
Qualifications and aptitudes
He has an honours degree in Economics and Accounting from the University of Bristol (1978) in the UK, specialising in urban economics and tax policy.
He has spoken at numerous engagements around the world and is regularly published in the specialist press.
Separate psychological profiling and IQ tests place him in the top 1% of the population / top 5% of management in terms of critical thinking ability and he is a member of MENSA.
He is married and has dual British and Australian nationality. He and his wife have traveled extensively in Asia, Australasia, Europe, the Middle East and North America.
