IFLR 1000
The Guide to the World's Leading Financial Law Firms

Prominent partner and "grandfather" of Samurai bond issuances Hiroyoshi Kuromaru is one of the key reasons Baker & McKenzie GJBJ keeps afloat in the second tier. His stellar practice has loyal clients and admiring peers lauding his expertise. Despite the dominance of the big four Japanese firms on most domestic securities deals, the Bakers team stands tall among formidable peers in the local law space and managed to land several notable mandates in 2011.

In one demonstration of its abilities, a team advised the joint lead managers in the issue and public offering of several Samurai bonds from the National Bank of Australia. These totalled in value at ¥156.3 billion ($2 billion). In another similar transaction, Australia and New Zealand Banking Group relied on Kuromaru and his team for its issuance and public offering of two Samurai Bonds.

This year, a focus of the firm's capital markets practice was expanding and bolstering its foreign law capabilities, particularly in the US Generally Accepted Accounting Principles (GAAP) sector.

The banking practice of Baker & McKenzie GJBJ has "strength in depth and highly effective quality assurance mechanisms in place," says a client. "This translates into guaranteed availability of advice and assistance at a high quality level."

Naoaki Eguchi, as head of the department, runs an efficient practice that has kept busy on a range of work from acquisition financing to syndicated loans. The group comprises over 30 Japanese lawyer and foreign attorneys, and is continuing to expand. Of this group, a fund client notes: "They are extremely professional and prompt. None of the Baker & McKenzie GJBJ staff we have dealt with have over-inflated egos."

The firm boasts an active and developed real estate finance practice, with Gavin Rafferty and Chris Hodgens providing specialist advice. "Both Chris and Gavin are well versed and very capable in their respective fields," praises a client.

This February, Eguchi helmed a team that advised a large domestic bank as the mandated arranger and agent in relation to a syndicated loan to rebuild a university building in Osaka. The deal involved creating a special purpose company structure and a scheme structure where the subsidy from a public body would be resourced to pay back the loan. Sumitomo Trust and Banking turned to the firm for advice on an acquisition finance in relation to the management buyout of Art Corporation.

"The team usually gives us comprehensive recommendations and I have never been disappointed with them," recalls a banking client. "The lawyers make commitments to us even in tough situations and complete them."

Highlighting the firm's multi-jurisdictional abilities, Eguchi and Rafferty shone for ING on its agreement to join with the Development Bank of Japan to provide a multi-billion yen term facility to PT OTO Multiartha, an Indonesian auto finance company.

Landing roles on several of the year's most prominent acquisitions, Baker & McKenzie GJBJ continues to be a go-to firm for many multinational and domestic corporates. Team leader Hiroshi Kondo is a familiar name in the market and the firm enjoys a high status for its domestic law advice.

On the foreign law side, Baker & McKenzie is further developing its capabilities, particularly in the projects practice area, with foreign and Japanese qualified lawyers led by Paul Davis and Anne Hung.

"Paul Davis understands our strategy very well and provides practical solutions," says a client of the projects partner. "Anne Hung quickly understands the issues, precisely analyses the issue with deep insights and works very diligently."

An energy powerhouse uses the firm because "the team understands our corporate policy, strategy and culture very well. It has lots of experience in LNG projects as well as long-term contracts."

Kondo is no stranger to praise, with a financial services client pointing out that "his negotiation skills are outstanding". Another says that: "his advice was highly professional and ready-to-use."

A coup for the firm was winning the role advising Daiwa Securities SMBC Principal Investments in relation to Panasonic's tender offer to acquire the majority of outstanding shares of Sanyo Electric. On the outbound front, Davis and Hung starred for Tokyo Gas on its recent purchase of an equity interest in the BG Group's Queensland Curtis LNG (liquified natural gas) Project and on their agreement to purchase LNG beginning in 2015 for 20 years. The project is valued at A$32 billion ($33 billion). This transaction sets precedents as the first sales agreement for the supply of LNG sourced from coal seam gas to Japan.

Last August 2010, counsel Mina Arai-Ito was brought on board. She adds a new element of expertise to the corporate team, bringing significant Middle-Eastern experience having worked with Japanese corporates on Egypt-related deals.

One client was so happy with one of the Bakers lawyers he "recommended the Tokyo Aoyoma lawyers to become in-house legal counsels on behalf of one of our investee companies."

Led by Naoaki Eguchi, the team at Bakers acts on multiple project financing transactions in the energy sector. Among the many transactions successfully completed in the last 12 months, one unique hybrid deal involving a project finance structure was closed for a major Japanese bank in relation to a syndicated loan to rebuild a university building in Osaka. The deal, which was valued at over $100 million, was led by Eguchi and closed early this year.

In Japan's second transaction involving a non-power company acquiring a hydro power plant, Eguchi and his team advised arranger and senior lender Sumitomo Trust & Banking in its acquisition finance of the Akashiba Water Power Plant in late 2010. The deal was valued at $40 million.

Together with their banking and finance and securities group, Eguchi's team acted for banks, sponsors and the national and local governments on more than a few private finance initiative (PFI) transactions. The group also advises a number of city councils and local and national organisations concerning PFI options, bids, and guidelines for various projects.