Indorama Ventures Public Company Limited has successfully secured its inaugural sustainability-linked Trade Finance facility with Sumitomo Mitsui Banking Corporation (“SMBC”). The USD 50 million facility for the global sustainable chemical company was inked during the signing ceremony yesterday in Bangkok.
This facility will support Indorama Ventures’ working capital, linking the applicable margin that ratchets to the company’s well established sustainability targets, which include greenhouse gas (GHG) emission intensity reduction, post-consumer PET bale input for recycling, and boosting renewable electricity consumption.
This transaction underscores Indorama Ventures’ commitment to environmental, social, and governance (ESG) goals and reflects its leadership in leveraging sustainable financing in Thailand.
Deputy Group CEO and Group CFO, Indorama Ventures, DK Agarwal, 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 said “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.”
“In line with SMBC Group’s commitment to achieve a sustainable finance portfolio of JPY 50 trillion by 2030, we ensure our on-shelf Trade Finance products match various requirements from conventional to holistic supply chain as every move counts towards achieving our ESG milestones to pave the way to a green transition.” added Country Head of SMBC Thailand, Takashi Toyoda. “We believe in the power of working together in the global fight against climate change. When such partnerships are forged between financial institutions and corporate customers, the results will be impactful and help us create a better tomorrow,” said Mr Toyoda.