Indorama Ventures secures multi-million deal to boost Asia’s PET recycling
(Image credit: Indorama Ventures).05 Jul 2024 --- Thailand-headquartered petrochemicals producer Indorama Ventures has secured a new seven-year loan totaling US$200 million from the International Finance Corporation (IFC) to help fund the growth of the company’s strategic sustainability programs in India, Thailand and Indonesia.
The funds will be used to finance sustainability initiatives that bolster Indorama Ventures’ 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.
This loan from the IFC, which is a member of the World Bank Group focusing on private sector development in emerging markets, can flexibility be converted into a sustainability-linked facility based on mutually agreed sustainability targets in the future.
Additionally, the financing will reimburse costs incurred in 2023 and 2024 for sustainability projects.
“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,” says Yash Lohia, chairman of the ESG Council at Indorama Ventures.
“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.”
Indorama Ventures financing includes an inaugural US$300 million “industry-first” Blue Loan in 2020, which comprises a US$150 million senior loan from IFC and parallel loans of US$150 million from the Asian Development Bank and the German Investment and Development Company.
“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,” says Jane Yuan Xu, country manager for Thailand and Myanmar at IFC.
“Together, we aim to leverage recycling as a powerful tool in managing plastic waste and advancing broader sustainability and climate change goals.”
