Indorama Ventures secures $200-MM loan from IFC to drive sustainability program
Indorama Ventures, a global sustainable chemical producer, has secured a new 7-yr loan totaling $200 MM from the International Finance Corporation (IFC) to help fund the continued growth of the company’s strategic sustainability programs in India, Thailand and Indonesia, and promote a circular economy as a leading PET recycler.
The loan from the IFC, which is a member of the World Bank Group focused on private sector development in emerging markets, provides a long tenor and flexibility to convert into a sustainability-linked facility based on mutually agreed sustainability targets in the future. The funds will be used to finance sustainability initiatives that bolster Indorama Ventures’ leading strategic footprint in PET recycling. These also include enhancing efficiency at the company’s existing recycling facilities at Nakhon Pathom and Rayong in Thailand, launching a state-of-the-art plant in Karawang in Indonesia, and establishing new recycling plants in India. Additionally, the financing will reimburse costs incurred in 2023 and 2024 for sustainability projects.
Yash Lohia, Chairman of the ESG Council at Indorama Ventures, said, “Our continued collaboration with IFC is an important part of our ongoing investment in sustainability, allowing us to expand our recycling capabilities and make a meaningful impact on the environment and communities in key emerging markets. As a global leader in the chemical industry, Indorama Ventures is dedicated to setting new benchmarks for sustainable practices and promoting a circular economy worldwide.”
Jane Yuan Xu, Country Manager for Thailand and Myanmar at IFC, said, “We are delighted to partner once again with Indorama Ventures. This loan exemplifies IFC’s commitment to fostering a circular economy and enhancing waste management in emerging markets. Together, we aim to leverage recycling as a powerful tool in managing plastic waste and advancing broader sustainability and climate change goals.”
Indorama Ventures maintains a sustainable and diversified financing strategy, including an inaugural $300-MM industry-first Blue Loan in 2020, which comprised a $150-MM senior loan from IFC and parallel loans of $150 MM from the Asian Development Bank (ADB) and Deutsche Investitions-und Entwicklungsgesellschaft (DEG).
Comments