Investment/Indorama

Editorial staff

Indorama Ventures Plc, a global sustainable chemical producer, announced the successful closing of a US$500 million syndicated term loan facility, arranged by HSBC and Standard Chartered Bank (Singapore) Limited.

This latest transaction is part of the company’s program to refinance upcoming maturities totaling US$1.1 billion, with a focus on generating ample liquidity, strengthening its financial structure, and diversifying sources of financing.

Under Indorama Ventures’ IVL 2.0 evolved business strategy, which it outlined at its annual Capital Markets Day on 5 March, the company is optimizing its assets and deleveraging its business to drive enhanced earnings quality in an era of higher interest rates and a changed industry landscape.

Head of Wholesale Banking at HSBC Thailand, Krisda Phatcharoen (left) 

Deputy Group CEO and Group CFO at Indorama Ventures , DK Agarwal (center)

President & CEO at Standard Chartered Bank (Thai), Plakorn Wanglee (right)

This includes debt refinancing of US$700 million for 2024 and US$400 million for 2025, to be completed in the first half of 2024. This latest syndicated facility has a bullet maturity in 5 years and will fund working capital and refinance previous issuances, including a US$300 million bond maturing in September 2024.

This is Indorama Ventures’ first syndicated facility that is structured with a sustainability-linked loan conversion feature. In the year to date, Indorama Ventures has raised an additional US$255 million through a 5-year ‘Ninja loan’ and a further 10 billion baht through an issuance of Thai baht-denominated debentures.

All transactions were completed at lower-than-average spreads when compared to previous issuances. The company is also planning to issue subordinated perpetual debentures totaling 15 billion baht through a public offering in July this year.

“We are delighted to secure this facility with the support of HSBC and Standard Chartered Bank, which follows other successful raises in the first half of this year under our refinancing program. As we navigate the changed industry landscape through our IVL 2.0 strategy, this transaction is part of our commitment to ensure financial stability, responsible management, and a diversified financing approach,” DK Agarwal, deputy Group CEO and Group CFO at Indorama Ventures, said.