JAKARTA (TheInsiderStories) – Star Energy Geothermal Salak Ltd., and Star Energy Geothermal Darajat II Ltd., subsidiaries of conglomeration firm, PT Barito Pacific Tbk (IDX: BRPT), raised US$1.11 billion from green bond issuances, said the issuer today. The notes split in two tranches, which are $320 million with coupon of 3.25 percent and has a term 8.5 years due in April 2029
Then, $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. Bond proceeds will be used mainly for repay its existing loans.
Rudy Suparman, VP director of Barito, stated, the company continues to forge the path in a more sustainable energy sector. It will also continue to push toward investments in technologies to help reduce carbon emissions, increase sustainable energy and promoting circular economies in Indonesia, he adds.
According to Fitch, the subsidiary of Barito need fresh funds in the near future for the Life Time Extension program at the Salak and Darajat geothermal plants, after 20 years of operation. The two power plants have a combined capacity of up to 647.8 megawatts (MW), which are 412.8 MW is operated by the company.
The rest is operated by state-owned power producer, PT Perusahaan Listrik Negara using natural gas supplied by the blocks. While, Moody’s Investor Service assigned a Baa3 rating with a stable outlook for the foreign currency bonds. Its explained that the proceeds from the issuance will be used by the electric producer for bond refinancing and geothermal operations.
Barito targeting the electricity capacity of Star Energy, which is the largest geothermal company in Indonesia, to increase from 875 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. The company owned by tycoon Prajogo Pangestu has consolidated its petrochemical firm PT Chandra Asri Petrochemical Tbk (IDX: CAPC) and Star Energy under the holding firm.
In 2019, Star Energy 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 PLN, Barito Pacific 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.
The company also owns a controlling share and consolidates PT Chandra Asri Petrochemical Tbk (IDX: TPIA), Indonesia’s largest and only integrated petrochemical company.
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