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Overview

Bank of China contributes $156.3 million to $1.25 billion syndicated loan to Star Energy Geothermal Ltd. to facilitate acquisition of geothermal assets

Commitments (Constant USD, 2023)$166,322,953
Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2017
Start (actual)
Apr 18, 2018

Geospatial footprint

Map overview

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The purpose of this project was for Star Energy Geothermal (Wayang Windu) Ltd. (SEGWW) to acquire the Salak and Darajat fields (geothermal assets in West Java). More detailed locational information can be found at https://www.openstreetmap.org/way/237756221#map=17/-7.19626/107.62544

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Credit Suisse AG
  • DBS Bank Ltd.
  • Maybank International (L) Limited

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia))
  • Industrial and Commercial Bank of China (ICBC)

State-owned companies

  • Bank of the Philippines Islands Capital Corp.

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Star Energy Geothermal (Wayang Windu) Ltd.

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Star Energy Geothermal (Wayang Windu) Ltd.

Loan desecription

Bank of China contributions to $1.25 billion syndicated loan to Star Energy Geothermal Ltd. to facilitate acquisition of geothermal assets

Interest type•Unknown

Narrative

Full Description

Project narrative

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. 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 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.

Staff comments

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.