Investors struggle with Star Energy project bond

By Morgan Davis
19 Apr 2018

Indonesia’s Star Energy Geothermal raised $580m from its debut green bond this week, selling a deal that also had some of the hallmarks of a project finance deal — a rare combination in Asia’s credit market. But the deal hit several speed bumps along the way. Morgan Davis reports.

Star Energy, rated Ba3/—/BB-, was never going to have an easy time selling its first project bond. The success of a $2bn deal from fellow Indonesian borrower Paiton Energy last August raised hopes, but the differences between the two credits are obvious. Paiton’s Baa3/—/BBB- ratings undoubtedly helped ease ...

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