THAILAND – Indorama Ventures, a sustainable chemical production company, has secured a seven-year loan of US$200 million from the International Finance Corporation (IFC).
This funding aims to enhance the company’s strategic sustainability programs across India, Thailand, and Indonesia.
The loan also includes the flexibility to convert into a sustainability-linked facility in the future based on agreed-upon targets.
With this loan, Indorama Ventures plans to bolster its polyethylene terephthalate (PET) recycling footprint and efficiency.
This includes upgrading existing recycling facilities in Nakhon Pathom and Rayong, Thailand, launching an advanced plant in Karawang, Indonesia, and developing new recycling plants in India. The financing will also reimburse expenses from 2023 and 2024 tied to sustainability projects.
Yash Lohia, Chair of Indorama Ventures ESG Council, stated, “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.”
Indorama Ventures has a history of sustainable and diversified financing strategies, including a US$300 million industry-first ‘blue loan’ in 2020.
This blue loan comprised a US$150 million senior loan from the IFC and parallel loans totaling US$150 million from the Asian Development Bank and Deutsche Investitions-und Entwicklungsgesellschaft.
Jane Yuan Xu, IFC Thailand, and Myanmar Country Manager commented, “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.”
In August, the company invested US$20 million to expand its recycling facility in Brazil. According to Indorama, this investment will help optimize the facility’s processes and acquire new equipment, such as washing machines to remove labels, grind bottles in water, and reduce water consumption by 70%.
Supported by a “Blue Loan” from the IFC, the Juiz de Fora, Brazil’s recycling facility is increasing its production capacity from 9,000 metric tonnes to 25,000 metric tonnes of PET, made annually from PCR PET material.
DK Agarwal, Deputy Group CEO at Indorama Ventures, expressed, “It is gratifying to leverage the IFC’s generous funding to invest in important projects that build on Indorama Ventures’ industry leadership in sustainability.
“We are grateful to IFC for this Blue Loan reinforcing Brazil’s importance as a leader in sustainability, which also recognizes the excellence and potential of our recycling operations.”
This project is part of Indorama Ventures’ Vision 2030 ambition to continue building an environmentally sustainable global company.
The company plans to spend US$1.5 billion to increase its recycling capacity to 50 billion PET bottles annually by 2025.
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