ICBC contributes $120 million to $660 million syndicated loan to Star Energy Geothermal Ltd. to facilitate acquisition of geothermal assets (Linked to Project ID#73327)

In 2017, Star Energy Geothermal (Wayang Windu) Ltd. — a special purpose vehicle that is majorly owned by Star Energy Group Holdings Pte Ltd — signed a $1.25 billion syndicated loan facility agreement with a group of lenders. Bank of China contributed $156.3 million (captured in Project ID#62262). The borrowing terms of the loan are unknown. The proceeds of the loan were to be used by Star Energy Geothermal (Wayang Windu) Ltd. (the borrower) to facilitate its acquisition of geothermal assets in Indonesia from Chevron. Star Energy Geothermal (Wayang Windu) Ltd. and its consortium partners (Philippine conglomerate Ayala and Thailand’s Electricity Generating, or EGCO) announced their agreement to acquire the Salak and Darajat fields in West Java in December 2016 and closed the $2.1 billion acquisition in March 2017. Bank of the Philippine Islands and DBS Bank coordinated the $1.25 billion secured amortizing loan that attracted six other Asian lenders and was put in place by March 2017. Credit Suisse, DBS and Maybank, and ICBC issued a $660 million loan to Star Energy Geothermal Ltd. (SEG), a special purpose vehicle and holding company that already owned another geothermal asset at Wayang Windu. ICBC Asia contributed $70 million and ICBC contributed provided $50 million (captured in Project ID#73327) to the $660 million, five-year syndicated loan, which was further split into a $310 million tranche A to fund SEG’s equity contribution and a $350 million tranche B to redeem the bond.

Additional details

1. The Star Energy Group is a SEGWW shareholder with an ownership of 60%. The remaining 40% is owned by Electricity Generating PCL (EGCO) and Mitsubishi Corporation with 20% share ownership. The Star Energy Group is an SEG shareholder with an ownership of 60 percent. The remaining 40 percent is owned by Electricity Generating PCL (EGCO) and Mitsubishi Corporation with 20 percent share ownership. The Star Energy Group’s shareholder is a Prajogo Pangestu tycoon with a 66.7 percent ownership stake and the remaining 33.3 percent is owned by BCPG Public Company.

Number of official sources

2

Number of total sources

7