Indorama Ventures announced it has secured a $200 million loan from the International Finance Corporation (IFC) to help fund its sustainability programmes in India, Thailand, and Indonesia.
The Bangkok-based PET manufacturer said it will use the seven-year loan to finance its PET recycling operations across the three countries. Indorama said it plans to build a new PET recycling facility in Karawang, India, and to establish new plants in India. Additionally, the funds will be used to enhance the efficiency of the company’s recycling facilities at Nakhon Pathom and Rayong in Thailand, as well as to reimburse costs incurred in 2023 and 2024 for sustainability projects.
“Our continued collaboration with IFC is an important part of our ongoing investment in sustainability, allowing us to expand our recycling capabilities and make a meaningful impact on the environment and communities in key emerging markets,” said Yash Lohia, chairman of the ESG council at Indorama Ventures. “As a global leader in the chemical industry, Indorama Ventures is dedicated to setting new benchmarks for sustainable practices and promoting a circular economy worldwide.”
The IFC is a member of the World Bank Group which focusses on private sector development in emerging markets. Indorama received a $150 million loan from the IFC in 2020, as part of a $300 million industry-first Blue Loan to address marine plastic pollution.
Earlier this year, the company announced a significant review in its business strategy to adapt to ‘unprecedented industry conditions’.
The company’s new policy is designed to allow it to benefit from lower feedstock prices through ‘make or buy’ strategies that reduce working capital and interest costs. It will optimise its asset footprint, improve cashflow, and significantly reduce debt levels. Measures include a $2.5 billion reduction in net debt to around $4.3 billion in 2026, including generating $0.8 billion in cashflow from operational improvements and a further $1.7 billion from strategic corporate actions including divestments, asset actions, and select business listings. These steps are aimed at reducing its debt to EBITDA ratio to less than three times.
Indorama saw a 53% decline in earnings in 2023 to an EBIDA of $1.12 billion. Its revenue declined 17% year-on-year to $15.6 billion and its net operating debt to equity increased to 1.13 times.