Singapore-based Star Energy Group Holdings Pte. Ltd. (SEGHPL), the subsidiary of Indonesia-listed Barito Renewables Energy, has secured a $300-million loan facility from Bangkok Bank to finance the development of two geothermal projects in Indonesia.
The proceeds will be used to fund the Suoh Sekincau geothermal project in Sumatra and the Hamiding geothermal project in Maluku, the company said in a disclosure on Tuesday. The financing, signed on July 17, comprises two facilities.
Under the agreement, Facility A will finance up to $105 million of pre-construction costs for the Suoh Sekincau project in Sumatra. Facility B will fund up to $105 million of construction costs for the same project through an equity injection into PT Star Energy Suoh Sekincau, while $90 million will be channelled to PT Star Energy Geothermal Indonesia for the Hamiding project in Maluku.
Barito Renewables said the financing is intended to strengthen funding capacity across its geothermal business, support capital expenditure and working capital requirements, improve liquidity management, and support long-term business growth.
Based on the group’s audited 2025 financial statements, the transaction represents 33.95% of the company’s equity of $883.5 million, making it a material transaction under Indonesian capital market regulations. Geothermal remains the company’s core business and is expected to drive its long-term growth as Indonesia accelerates clean energy development.
The company said the loan would increase consolidated indebtedness but is not expected to have a significant impact on its operations, legal standing or business continuity.
The facility has a five-year maturity from the first drawdown and is secured by pledges over shares in several Star Energy entities in Singapore and the Netherlands, as well as a debt service reserve account maintained with Bangkok Bank.
The agreement also includes restrictions on mergers, acquisitions, changes in business activities, lending, dividend distributions and share buybacks unless certain financial conditions, including a minimum debt service coverage ratio, are met.
