Indorama Ventures Secures $200M IFC Loan for PET Recycling and Sustainable Growth in Asia

Indorama Ventures, a leading global producer of sustainable chemicals, has announced the securing of a new $200 million, 7-year loan from the International Finance Corporation (IFC). This funding will support the ongoing expansion of the company’s strategic sustainability initiatives in India, Thailand, and Indonesia, furthering its commitment to promoting a circular economy as a leader in PET recycling worldwide.

The loan from the IFC, a member of the World Bank Group focused on private sector development in emerging markets, offers extended terms and flexibility to potentially transition into a sustainability-linked facility based on agreed-upon sustainability targets in the future. These funds will support Indorama Ventures in financing sustainability initiatives that strengthen its leadership in PET recycling. This includes enhancing operational efficiency at existing recycling facilities in Nakhon Pathom and Rayong, Thailand, launching a cutting-edge facility in Karawang, Indonesia, and establishing new recycling plants in India. Moreover, the financing will cover costs incurred for sustainability projects during 2023 and 2024.

Yash Lohia, Chairman of Indorama Ventures' ESG Council, stated, "Our ongoing partnership with IFC remains pivotal in our commitment to sustainability, enabling us to enhance our recycling capacities and contribute significantly to environmental and community welfare in vital emerging markets. As a leading global player in the chemical sector, Indorama Ventures is steadfast in establishing pioneering standards for sustainability and advancing a circular economy on a global scale."

Jane Yuan Xu, IFC's Country Manager for Thailand and Myanmar, commented, "IFC is pleased to renew its partnership with Indorama Ventures. This loan underscores IFC's dedication to promoting a circular economy and improving waste management in developing economies. Together, we aspire to harness recycling as a significant strategy for addressing plastic waste and advancing comprehensive sustainability and climate objectives."

Indorama Ventures upholds a sustainable and diversified financing approach, exemplified by its pioneering $300 million Blue Loan initiative launched in 2020. This innovative financing package included a $150 million senior loan from IFC, alongside parallel loans totaling $150 million from the Asian Development Bank (ADB) and Deutsche Investitions-und Entwicklungsgesellschaft (DEG).

Originally established as Indorama Holdings, the company rapidly expanded into multiple business segments, achieving milestones such as becoming Thailand’s initial worsted wool yarn producer and subsequently emerging as the country’s largest manufacturer of PET and polyester fiber within a span of 15 years. Evolving from a domestic player to an international entity, the company pursued growth through strategic acquisitions in the United States and Europe, solidifying its position as a global producer of PET and a significant player in the PTA industry.