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Thailand's Indorama Ventures secures $500 mn loan for refinancing

13 May '24
17 min read
Thailand's Indorama Ventures secures $500mn loan for refinancing
Pic: Indorama Ventures

Insights

  • Indorama Ventures secures a $500 million syndicated term loan facility.
  • The loan, arranged by HSBC and Standard Chartered Bank, aligns with IVL 2.0 strategy focusing on asset optimisation and deleveraging.
  • This marks Indorama Ventures' first syndicated facility with a sustainability-linked loan conversion feature, amid plans for further debt issuances.

Indorama Ventures Public Company Limited, a global sustainable chemical producer, has 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. This is Indorama Ventures’ first syndicated facility that is structured with a sustainability-linked loan conversion feature.

In the year to date, Indorama Ventures has raised an additional US$255 million through a 5-year ‘Ninja loan’ and a further THB 10 billion through an issuance of Thai baht-denominated debentures. All transactions were completed at lower-than-average spreads when compared to previous issuances. The company is also planning to issue subordinated perpetual debentures totaling THB 15 billion through a public offering in July this year.

Mr. DK Agarwal, deputy group CEO and group CFO at Indorama Ventures, said, “We are delighted to secure this facility with the support of HSBC and Standard Chartered 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.”

Mr. Krisda Phatcharoen, head of wholesale banking at HSBC Thailand, said, “HSBC is pleased to act as the joint mandated lead arranger, underwriter, and bookrunner of this syndicated loan for Indorama Ventures. Our relationship dates to 1995, and we are proud to continue to support Indorama Ventures as they navigate the current uncertain environment. 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.”

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 pleased 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 unparalleled international network to create value for our business, our customers, and our communities.”

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)

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