Indorama Ventures raises US$255 million through Ninja loan

Mr. DK Agarwal, deputy Group CEO and Group CFO at Indorama Ventures

Indorama Ventures Public Company Limited, a global sustainable chemical producer, announced it raised US$255 million through a sustainability-linked Ninja loan with international financial institutions.

The refinancing was achieved at lower spreads than the previous issuance in 2020.

The Ninja loan, which is a syndicated loan arranged in Japan for foreign companies, was arranged by Mizuho Bank, one of Japan’s largest banks. It features a bullet repayment schedule over five years to March 2029, linked to Indorama Ventures’ post-consumer polyethylene terephthalate (PET) input into recycling and Scope 1 and 2 greenhouse gas emission intensity targets.

The transaction achieved margin savings against the previous issuance, and the proceeds will be used as part of the company’s program to refinance $750 million for 2024 and $400 million for 2025, to be completed in the first quarter this year.

Under its IVL 2.0 business strategy, announced on 5 March, Indorama Ventures is strengthening its capital structure in a prolonged environment of higher interest rates by deleveraging its business and optimizing operations to enhance earnings. On 14 March, the company said it raised 10 billion baht through an issue of Thai baht-denominated debentures to institutional and high-net-worth investors at lower spreads than the company’s previous issuance in May 2023.

DK Agarwal, deputy Group CEO and Group CFO at Indorama Ventures, said, “We are pleased to secure this successful refinancing, following our debenture issuance last month. These transactions reflect our stakeholders’ confidence in our financial stability and responsible management in a higher interest rate environment. Their support is instrumental to securing our liquidity needs, ahead of schedule, through a diversified financing approach.”

Indorama Ventures Public Company Limited, 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, Integrated Oxides and Derivatives, and Fibers. 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).