PT Sorik Marapi Geothermal Power (SMGP) has established a Green Finance Framework to enable the company to issue green bonds (including project bonds) green loans, green convertibles, and other green finance instruments. The proceeds will be exclusively allocated to increasing installed geothermal energy capacity, which in turn will support the Republic of Indonesia’s net zero objective.
The framework has been developed in accordance with the 2021 ICMA’s Green Bond Principles (GBP) 2023 LMA’s Green Loan Principles (GLP) and align with some of the United Nations Sustainability Development Goals (UN SDGs). DNV, as the independent expert in assurance and risk management, has acted as Second Party Opinion Provider.
Dr. Yan Tang, SMGP’s CEO, said: “Our technologies and services enable SMGP to increasing installed geothermal energy capacity in Indonesia to reduce greenhouse gases (GHG) emissions and support Republic of Indonesia’s net zero objective. The Green Finance Framework supports us in this mission and enables us to allocate capital to activities that enhance the green transition.”
The Green Finance Framework and the Second Party Opinion are available on KS Orka’s website, http://www.ksorka-sorikmarapi.com/page/pressrelease/2024-pressrelease-ind.html.
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For further information, please contact:
Ali Sahid, Vice President, Operation & Maintenance, SMGP, email: ali.sahid@ksorka.com
Rina Yudiastami, Vice President, HR & Services, SMGP, email: rina.yudiastami@ksorka.com
About PT Sorik Marapi Geothermal Power
PT Sorik Marapi Geothermal Power (SMGP) is the legal holder of the right to manage and develop geothermal resources in Sorik Marapi – Roburan – Sampuraga Geothermal Work Area in Mandailing Natal, North Sumatra. SMGP obtained Geothermal Business Permit in 2010 and Geothermal Permit since 2015, covering an area of 62,900 HA and potential geothermal resources up to 240 MW. In 2016, KS Orka Renewables Pte. Ltd. acquired 95% of PT SMGP shares from its previous sponsor. Until now, PT SMGP has achieved Commercial Operating Date (COD) for Unit I of 42 MW in 2019, Unit II of 44 MW in 2021, Unit III of 46 MW and Unit IV of 27 MW in 2023.
