JAKARTA (TheInsiderStories) – Publicly listed firm, PT Barito Pacific Tbk (IDX: BRPT) to receive dividends US$52 million from its unit, Star Energy Geothermal (Salak – Darajat) Group, said the director last week. The subsidiary will distribute dividend of around $150 million for the shareholders along with the issuance of green bonds of $1.11 billion in mid-October.
The notes split in two tranches, First tranche with total amount $320 million have a coupon rate of 3.25 percent and has a term 8.5 years due in April 2029. Then, second trance worth of $790 million have a tenure 18 years with a rate 4.85 percent due in October 2038.
The bond is rated Baa3 by Moody’s and BBB- by Fitch, with stable outlook. The director, David Kosasih, said the dividend distribution is still in process and will be received by the company before the end of this year. The issuer holds 34.63 percent shares of the Singapore-based firm.
“The dividend proceed will support Barito’ liquidity,” he told the media in virtual conference.
Fitch Rating, in the latest research, explained that company’ liquidity can improve along with the dividends. It also increases the company’ interest payment to 1.9 times in 2020 and 0.8 times in 2021. The fresh funds could be used by the company owned by Indonesian tycoon Prajogo Pangestu, to reduce its debt, although Barito has not confirmed any plans.
The holding company targeting the electricity capacity of Star Energy, which is the largest geothermal company in Indonesia, to increase from 875 megawatts (MW) to 1,200 MW in the coming year. The company become the shareholders of the geothermal producer after take over 66.7 percent Singapore-based, Star Energy Group Holdings Pte. Ltd., ownerships on Dec. 12, 2017 from global energy giant Chevron Pacific.
The others hold by London-based Ashmore Investment. Currently, the issuer has consolidated its petrochemical firm PT Chandra Asri Petrochemical Tbk (IDX: CAPC) and Star Energy. In 2019, the power producer deployed a drilling program at Wayang Windu in order to seek additional geothermal reserves for the expansion of the geothermal power plant.
The Group controlled 60 percent of the projects and The remaining owned by Electricity Generating PCL (EGCO) and Mitsubishi Corporation. Aside from Star Energy, the issuer‘ crown jewel and its most precious business asset is Chandra Asri, the country’ biggest petrochemical producer. Its unit produces chemicals and plastic raw materials, including butadiene and polythene, used in packaging of electronics, cosmetic products.
Barito is an integrated energy company based in Indonesia with multiple power and industrial assets. Through Star Energy, Barito Pacific operates the largest geothermal company in Indonesia and the third largest geothermal company in the world.
In collaboration with Indonesia Power, a wholly-owned subsidiary of PT Perusahaan Listrik Negara, the unit is developing Java 9 and 10, a 2 x 1,000 MW ultra super-critical class power plant that will be installed with unprecedented emission reduction technologies. This power plant will reducing cost by lowering consumption of fuel by up to 20 percent per kilowatt per hour basis, hence reducing carbon emission by the pro-rated amount.
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