Barito secures $121m loan to support Salak and Darajat geothermal expansion, Indonesia
Barito Renewables through its subsidiaries has secured a $121 million loan for capacity expansion at the Salak and Darajat geothermal fields in Indonesia.
PT Barito Renewables Energy Tbk (BREN), through its subsidiaries, has signed a loan facility agreement worth USD 121.1 million to support its capacity expansion efforts in the Salak and Darajat geothermal power projects in West Java Indonesia.
As BREN Director and Corporate Secretary Agus Sandy Widyanto explains, the loan agreement involves three BREN subsidiaries, namely Star Energy Geothermal Pte. Ltd. (SEGPL), Star Energy Geothermal Netherlands BV (SEGN BV), and Star Energy Geothermal (Salak Darajat) BV (SEGSD BV). The loan structure is as follows:
- SEGPL and SEGN BV will obtain a Facility A loan with a total commitment of USD 96.1 million
- SEGSD BV will obtain a Facility B loan worth USD 25 million
Sumitomo Mitsui Banking Corporation Singapore Brance (SMBC) and DBS Bank Ltf are the initial lenders and Green Loan Coordinators. The initial maturity date of the loan will be in 5 years from the date of the agreement, or on 18 June 2030. DBS Bank also acted as the agent, collateral agent, and account bank.
The loan will go towards capacity expansion of the Salak and Darajat geothermal fields operated by Star Enegry. More specifically, the following activities will be undertaken:
- Retrofitting of the existing Unit 3 geothermal unit in Darajat, increasing the capacity from 122 MW to 129 MW
- Construction of a new Salak Unit 7 geothermal power plant, providing an additional 40-MW capacity
The 47 MW of additional capacity from this loan will be part of Star Energy’s 102.6-MW capacity expansion goal, as announced last year during the 2024 IIGCE. Aside from their Wayang Windu, Salak, and Darajat operating fields, Star Energy also holds the license for geothermal greenfields Gunung Hamiding in North Maluku and Sekincau in Lampung.