Indorama Ventures Public Company Limited, prepares to issue subordinat perpetual bonds to be offer to the public, expect between July 1-4, 2024, through leading financial institutions.
The coupon rate for the first five years is between [5.90-6.10%] per annum, payable every six months. The company is confident in receiving positive responses from investors. Thanks to the satisfactory returns, consistent redemption history every five years of the past perpetual bonds,
and the perpetual bonds ‘A’ credit rating reflecting strength as a leading sustainable chemical company making great products for society.
Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, prepares to issue and offer perpetual bonds,
redeemable upon company liquidation, with the issuer’s right to redeem the perpetual bonds early and the right to defer interest payments without any conditions (“perpetual bonds”).
The offering is for the 1/2024 tranche, with the issuer’s credit rating at “AA-” with a stable outlook and the perpetual bonds’ credit rating at “A,” rated by TRIS Rating on April 30, 2024. The company has set the coupon rate for the first 5 years in the range of [5.90 – 6.10]% per annum, with the final coupon to be announc, payable every 6 months throughout the term.
The perpetual bond aims to prepare for the redemption of previous perpetual bonds issued in 2019,
which will reach 5-year maturity in November 2024.
Bond is offer between July 1-4
This perpetual bonds offering is expect to take place between July 1-4, 2024,
offer to the public, through leading financial institutions appoint as joint lead arrangers.
These include Bangkok Bank, Krungthai Bank, Kasikornbank, Siam Commercial Bank, CIMB Thai Bank, Kiatnakin Phatra Securities, Krungthai XSpring Securities, Maybank Securities (Thailand), Yuanta Securities (Thailand), Asia Plus Securities, and Thanachart Securities. Currently, the company is in the process of submitting the information draft prospectus to the Securities and Exchange Commission (SEC).
Mr DK Agarwal, Deputy Group CEO and Group CFO at Indorama Ventures, said, “We are confident that these perpetual bonds remain desirable and attractive to investors,
given the ‘A’ issue credit rating and satisfactory returns. The business fundamentals and financial strength of Indorama Ventures
also provide constant proof for investor confidence in their decision to invest in the company’s perpetual bonds in this offering, as in previous occasions.”
Indorama operates three businesses
Currently, Indorama Ventures operates within three business segments. Firstly. The Combined PET business segment stands as the world’s largest producer of PET resin,
with a total production capacity of approximately six million tons per year.
Secondly, the Indovinya, formerly known as the Integrated Oxides and Derivatives (IOD) business segment, focuses on environmentally friendly chemical innovations.
Lastly, the fibers business segment produces fibers used in a wide range of hygiene products,
such as baby diapers and face masks, lifestyle products like apparel and furniture, and all mobility products, including fibers for car interiors and tire cords.
“Our company’s new strategy, IVL 2.0. Underscores our commitment to further strengthen our financial structure
while further enhancing our business model’s capabilities. Leveraging our unmatched global production footprint, we aim to sustain our industry leadership. This entails optimizing our debt structure, enhancing the quality of earnings, and fostering cash flow through a disciplined capital approach. We are confident that these measures will certainly instill investor confidence in our perpetual debentures. ” Added. Mr DK Agarwal.
Indorama Ventures places great emphasis on innovation and sustainability, setting clear sustainability indicators,
which can be achiev through initiatives such as PET recycling. Decarbonization, renewable energy, and human capital development.
In addition in 2024. MSCI (Morgan Stanley Capital International), a leading provider of research-driven indices and analytics,
awarded the company an upgraded ‘AA’ from ‘A’ rating for its ESG commitments reaffirming its outstanding progress in sustainability
and steadfast commitment to responsible ESG practices for the benefit of all stakeholders involved.
Related News : Indorama Ventures announced the successful raises US$500 million
