Investment/Indorama Ventures

Editorial staff

Indorama Ventures Plc (IVL), a global sustainable chemical company, is ready to offer perpetual bonds to the public from 1-4 July 2024 through leading financial institutions. The bonds feature a first 5-year coupon rate of 6.10% per annum, with a rating of “A”.

The attractive returns provide investors an opportunity to invest in a company with a clear business strategy aimed at sustainable long-term growth.

In addition to the attractive coupon rate and issue rating, as a company, Indorama Ventures is rated “AA-” with a stable outlook from TRIS Rating as of 30 April 2024. This underscores the advantages of Indorama Ventures’ perpetual bonds and positions the company as the highest-rated issuer of similar bonds currently in the market.

The perpetual bonds are available to the public through leading financial institutions, including Bangkok Bank, Krungthai Bank, Kasikorn Bank, Siam Commercial Bank, CIMB Thai Bank, Kiatnakin Phatra Securities, Krungthai XSpring Securities, Maybank Securities (Thailand), Yuanta Securities (Thailand), Asia Plus Securities, and Thanachart Securities.

Indorama Ventures’ previous two issuances of perpetual bonds in 2014 and 2019 attracted significant investor interest. The upcoming issuance will redeem the existing perpetual bonds that reach their 5th anniversary in November 2024. Furthermore, the company has a strong track record of timely interest payments to perpetual bondholders and has consistently redeemed these bonds after 5-year periods. These factors continue to drive investor interest in Indorama Ventures’ perpetual bonds.

DK Agarwal, deputy group CEO and Group CFO at Indorama Ventures said: "With our upcoming issuance of perpetual bonds, we are offering investors a compelling opportunity. Building on the success of our previous issuances, we are confident that the combination of attractive returns, high credit ratings, and our robust business fundamentals will resonate strongly with investors. This issuance not only reaffirms our commitment to delivering value but also underscores our track record of reliability and investor confidence."

DK Agarwal

Indorama Ventures, a global leader in chemicals, operates some 140 sites in more than 30 countries spanning Asia-Pacific, North America, South America, Europe, and Africa. Guided by its vision to be a world-class sustainable chemical company producing indispensable chemistry that touches billions of lives every day, Indorama Ventures’ ongoing investment in research and development fosters innovation that fulfills its customers’ need for more sustainable products. The company’s extensive portfolio includes products used to make daily consumer essentials, as well as advanced solutions such as fibers, yarns, and surfactants.

Looking ahead, 2024 marked the launch of the company’s IVL 2.0 evolved business strategy, positioning Indorama Ventures to enhance its competitiveness and leverage its unmatched global leadership to take advantage of profound industry changes. Key elements of the strategy include optimizing its asset footprint, driving improved cash flows, reducing debt, enhancing earnings quality, and maximizing shareholder value.

The arrangers emphasized that Indorama Ventures' perpetual bonds’ 6.10% interest rate is an attractive opportunity for investors compared to other bonds in the market. Similar to the company’s previous issuances, the perpetual bonds are expected to be received favorably by investors given Indorama Ventures' global business platform and industry leadership in growth markets with linkage to daily consumer necessities.

Indorama Ventures listed in Thailand (Bloomberg ticker IVL.TB) is one of the world's leading petrochemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific. The company's portfolio comprises Combined PET, Fibers, and Indovinya (formerly Integrated Oxides and Derivatives). Indorama Ventures' products serve major FMCG, agricultural, lifestyle, and automotive sectors, including beverages, hygiene, personal care, tire, and safety segments. Indorama Ventures has about 26,000 employees worldwide and reported revenue of US$15.6 billion in 2023. The company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).