#Yarn & Fiber

2022-11-17

Indorama Ventures signs €275 million ESG-linked revolving credit facility, bolstering its sustainability-led corporate financing program

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, has signed an ESG-Linked Revolving Credit Facility of €275 million with six syndicate banks, a further boost to the company’s long-standing commitment to sustainability-led corporate financing.

Tied to IVL’s ESG risk rating, the revolving credit facility’s pricing mechanism results in margin adjustments related to management score improvements across the Material ESG Issues as defined by independent sustainability and corporate governance research firms. The facility is available to IVL subsidiaries in Europe for two-years with the option to extend for one more year.

DK Agarwal, CEO at Indorama Ventures, said, “Sustainability-driven financing is an increasingly important enabler of IVL’s growth strategy, and we have been actively working in this growing area of corporate finance for some time, culminating in this latest development of securing an ESG-linked revolving credit facility. I would like to thank our partners for their support.”

The facility is part of IVL’s corporate financing strategy across a range of instruments linked to the company’s ESG and sustainability commitments. In November 2021, the company issued a THB 10 billion triple-tranche Sustainability-Linked Bond (SLB), the largest SLB issued in Thailand. IVL is on track to achieve its 2025 ESG goals. More ambitious 2030 targets include a 30% reduction in Scope 1 & 2 combined greenhouse gas (GHG) intensity, 15% reduction in energy intensity, 25% use of renewable electricity, 20% reduction in water intensity, 90% diversion of waste from landfill, recycle 1.5 million tons in PET bale input annually.

Yash Lohia, Chairman of ESG Council at Indorama Ventures, said, “Incorporating ESG targets into our corporate financing program is an important part of our overall commitment to sustainability. Our track record of meeting and growing our ESG targets is increasingly attractive to lenders and investors as we optimize IVL’s capital structure.”

ING Bank NV is the lead arranger and ESG coordinator together with other syndicate lenders including ABN Amro Bank NV, Bangkok Bank, Luminor Bank, Siam Commercial Bank and others.

Jan De Jaeck, Sustainable Finance Lead Belgium at ING Bank NV, said, “With the incorporation of an ESG rating link, Indorama Ventures has further embedded its group-wide sustainability strategy execution into the group’s corporate financing program. ING is proud to have acted as IVL’s ESG coordinator for this transaction”.