SMBC and Indorama Ventures Ink US$50 Million Sustainability-Linked Facility

Bangkok

Thai chemical company Indorama Ventures has successfully secured its inaugural sustainability-linked Trade Finance facility with Japanese lender Sumitomo Mitsui Banking Corporation (SMBC).

This facility will support Indorama Ventures’ working capital, linking the applicable margin that ratchets to the company’s sustainability targets, which include greenhouse gas (GHG) emission intensity reduction, post-consumer PET bale input for recycling, and boosting renewable electricity consumption.

Deputy Group CEO and Group CFO, Indorama Ventures, DK Agarwal, said: “We are pleased to partner with SMBC on this sustainability-linked working capital facility, which supports the commitment Indorama Ventures has towards integrating sustainability. We are dedicated to embedding sustainable finance into every aspect of our daily operations as we build towards achieving our ESG targets.”

Rajeev Kannan, Co-Head Asia Pacific Division, SMBC added: “It is evident that financial services play a pivotal role in accelerating the global transition toward our net zero future. By working closely with like-minded customers such as Indorama Ventures, SMBC is pleased to support their sustainability journey by developing practical solutions via our suite of sustainable finance products, ESG advisory services and team of experts, enabling customers to make a positive environmental impact.”

The transaction underscores Bangkok-headquartered Indorama’s commitment to environmental, social, and governance (ESG) goals and the growth of sustainable financing in Thailand.