Star Energy Geothermal Group Raises US$ 1.11 Billion from new Green Bonds, Marks a Significant Milestone in the Shift towards a More Environmentally Sustainable Energy Sector in Indonesia

Jakarta, 14 October 2020 – Star Energy Geothermal Salak, Ltd and Star Energy Geothermal Darajat II, Limited as Co-Issuers, priced a US$1.11 billion new senior secured green bonds, split across two tranches. The US$320mn 3.25% tranche has a term of 8.5 years (due in April 2029) and the US$790mn 4.85% tranche has a term of 18 years (due in October 2038). Both tranches will be listed on the Singapore Exchange Securities Trading Limited.


Hendra S. Tan, Group CEO of Star Energy Geothermal Group states that “Star Energy Geothermal Group remains committed to providing clean energy for Indonesia. Our 2020 green bond offering by Star Energy Geothermal Salak, Ltd and Star Energy Geothermal Darajat II, Limited is the largest that the Star Energy Geothermal Group raised to date, and we are excited by the substantial interests from global investors as this demonstrates the trust placed in Star Energy’s governance and operational capability. Amidst the ongoing COVID-19 pandemic, our bonds have attracted 3.5 times oversubscription, which demonstrates that investors are keen to support Indonesia’s progressive shift towards a more environmentally sustainable energy sector.”


The bonds are rated Baa3 by Moody’s and BBB- by Fitch, with stable outlooks. The bond proceeds will be used for the repayment of existing loans, associated repayment expenses, funding of DSRA and MMRA and general corporate purposes relating to Salak and Darajat geothermal operations. Credit Suisse, DBS Bank Ltd and Deutsche Bank are the Joint Global Coordinators for this transaction, and are accompanied by Barclays as Joint Bookrunners and BPI Capital as Co-Manager.


The green bonds represents the second offering of green bonds by Star Energy Geothermal Group. In April 2018, Star Energy Geothermal (Wayang Windu) Limited issued US$580 million of senior secured green bonds with a term of 15 years (due in April 2033).


Both green bond frameworks are aligned with the International Capital Market Association (“ICMA”) Green Bond Principles and the ASEAN Green Bond Standards.


Star Energy Geothermal Group is the biggest geothermal producer in Indonesia with a total installed capacity of 875MW. It operates three geothermal operations (Wayang Windu 227MW, Salak 337MW and Darajat 271MW). ***


About Star Energy Geothermal Group

Established in 2003, Star Energy Geothermal Group is Indonesia’s largest geothermal energy producer and a leading clean energy company. Star Energy Geothermal Group is currently managing and operate geothermal assets with a gross capacity of 875MW. With unparalleled geothermal expertise and deep stakeholder partnership, Star Energy Geothermal Group is committed to advancing Indonesia and the world towards a more responsible form of energy.