HSBC Indonesia Commits $20M Green Loan to Boost Indo Rama Synthetics Sustainability

HSBC Indonesia has provided a US$ 20 million green term loan to PT Indo-Rama Synthetics, a subsidiary of Singapore’s Indorama Corporation Pte. Ltd. The loan supports Indo-Rama’s drive to reduce energy consumption during the expansion of its yarn spinning factory. This expansion incorporates modern, energy-efficient machinery, aligning with Indo-Rama’s broader environmental, social and governance (ESG) objectives.

The publicly traded Indonesian company Indo-Rama views this expansion as crucial not only for meeting growing consumer demand but also for advancing sustainability. The project anticipates a 20% boost in energy efficiency to be achieved through the adoption of energy-saving technology and machinery. This initiative dovetails with Indo-Rama’s comprehensive ESG strategy, encompassing a decarbonization roadmap, renewable energy endeavours like solar panel installations and a commitment to recyclable materials.

HSBC Indonesia and Indo-Rama have nurtured a strong and enduring partnership grounded in shared values, emphasizing sustainable finance and responsible business practices.

V S Baldwa, Managing Director, Indorama, expressed satisfaction with their first green loan agreement with HSBC Indonesia, which further strengthens their decades-long global partnership. He highlighted their focus on integrated sustainability principles in business operations, with this transaction contributing to an enhanced environmental footprint. Baldwa looked forward to deepening their collaboration with HSBC Indonesia to achieve shared objectives.