The loan is designed with flexibility to help convert to a sustainability-linked facility based on mutually agreed targets. The deal will primarily finance initiatives to strengthen Indorama Ventures' “leading strategic footprint in PET recycling,” including:
- Enhancing efficiency at existing recycling facilities in Nakhon Pathom and Rayong, Thailand.
- Launching a new “state-of-the-art” plant in Karawang, Indonesia.
- Establishing new recycling plants in India.
“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,” said Yash Lohia, chairman of the ESG Council at Indorama Ventures.
Jane Yuan Xu, IFC's country manager for Thailand and Myanmar, added: “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.”
The loan follows Indorama Ventures' sustainable financing strategy, which included a $300m industry-first Blue Loan in 2020. That earlier financing package comprised a $150m senior loan from IFC and parallel loans of $150m from the Asian Development Bank (ADB) and Deutsche Investitions-und Entwicklungsgesellschaft (DEG).
In July 2023, Indorama Ventures and Sumitomo Mitsui Banking Corporation (SMBC), an international financial institution, joined forces to establish Thailand's first sustainability-linked Trade Finance facility, amounting to $50m.
In June 2024, The Future Supplier Initiative launched its first collective financing model in Bangladesh with H&M Group, Gap Inc, Mango and Bestseller to support apparel suppliers with the move towards decarbonisation.
