BANGKOK - Indorama Ventures, which suppliers a range of different synthetic fibres to the nonwovens sector has signed up to Thailand’s first sustainability linked trade finance facility.
The US$50 million facility with Sumitomo Mitsui Banking Corporation (SMBC) is short-term working capital finance linked to IVL's sustainability performance targets. These include reducing greenhouse gas (GHG) emissions intensity by 10% by 2025 (from a 2020 base), increasing post-consumer polyester bale input for recycling to 750,000 tons by 2025, and boosting renewable electricity consumption to 25% by 2030.
DK Agarwal, deputy group CEO and group CFO at Indorama Ventures, said: “We are pleased to partner with SMBC on this sustainability-linked working capital facility, which supports the commitment Indorama Ventures has towards integrating sustainability. We are dedicated to embedding sustainable finance into every aspect of our daily operations as we build towards achieving our ESG targets.”
Rajeev Kannan, co-head Asia Pacific Division, SMBC, added: “It is evident that financial services play a pivotal role in accelerating the global transition toward our net zero future. By working closely with like-minded customers such as Indorama Ventures, SMBC is pleased to support their sustainability journey by developing practical solutions via our suite of sustainable finance products, ESG advisory services and team of experts, enabling customers to make a positive environmental impact.”
Up to now, IVL has secured a total of $2.4 billion in long-term sustainable financing from various national and international financial institutions. The funds are supporting the company’s expansion and sustainability projects in line with its Vision 2030 strategy.
