Wednesday, April 18, 2018

Indonesia: Star Energy Issues Green Bond to Further geothermal Energy Development

Star Energy Geothermal Wayang Windu publishes a green bond for US $ 580 million (Business Insight)

Wayang Windu geothermal power plant (PLTP) operator, Star Energy Geothermal (Wayang Windu) Ltd (SEGWW), has recently completed an environmental bond offering or green bond worth US $ 580 million. The subsidiary of Star Energy Group Holdings Pte Ltd has set a coupon of 6.75 percent.

The bonds will be issued as of April 24. With a 15-year tenor, the notes will mature on April 24, 2033. The first coupon payment is scheduled for October 24, 2018.

Refinancing through bank loans is a Star Energy strategy because it requires quick funds to acquire two of Chevron's geothermal assets, namely Salak geothermal field and Darajat geothermal field. In March 2017, Star Energy completed the $ 2.3 billion acquisition through a consortium with AC Energy (Ayala Group's Philippine energy business arm) and Thailand Electricity Generating PCL (EGCO) power producer.