Indorama Ventures Public Company Limited, a global sustainable chemical producer announced the successful close 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.
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.
Indorama’s first syndicated facility this year
This is Indorama Ventures’ first syndicat facility, is structur with a sustainability-link loan conversion feature . In the year to date. Indorama Ventures has rais an additional US$255 million, Through a 5-year ‘Ninja loan’
And a further 10 billion baht through. issuance of Thai baht-denominat debentures all transactions, were complet at lower-than-average spreads. when compar to previous issuances the company is also planning to issue subordinat perpetual debentures total 15 billion baht through a public offering in July this year.
Mr DK Agarwal, deputy Group CEO and Group CFO at Indorama Ventures, said, “We are delight to secure this facility with the support of HSBC and Standard Charter Bank, which follows other successful raisings 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.”
HSBC support Indorama
Mr Krisda Phatcharoen, head of Wholesale Banking at HSBC Thailand, said, “HSBC is pleas to act as the joint mandated lead arranger, underwriter, and bookrunner of this syndicated loan for Indorama Ventures. Our relationship dates to1995, and we are proud to continue to support Indorama Ventures as they navigate the current uncertain environment.”
He said as the leading international bank in Southeast Asia, HSBC has a proud history and strong record of developing tailored solutions and providing best-in-class execution to help our clients expand across ASEAN and beyond.
Standard Chartered enhances Indorama’s capability
Mr Plakorn Wanglee, president & CEO at Standard Chartered Bank (Thai), said. “Indorama Ventures has demonstrated their capability as a global player in the chemical industry to continue to navigate global complexities and grow its business in a sustainable manner. We are pleas to be their strategic partner, supporting them through their journey.
This move is in line with Standard Chartered Bank’s strategy to drive commerce and prosperity as we leverage our unparallel international network to create value for our business, our customers, and our communities.”
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB).
Is one of the world’s leading chemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific.
The company’s portfolio comprises Combin PET. Fibers. Indovinya. Indorama Ventures’ products serve major FMCG. Agricultural, lifestyle. Automotive sectors. Including beverages, hygiene. Personal care, tire. Safety segments. Indorama Ventures has about 26,000 employees worldwide and reported revenue of US$15.6 billion in 2023.
The company is list in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
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