Indorama Ventures and SMBC Launch Thailand’s First Sustainable Trade Finance Facility
Indorama Ventures Public Company Limited, a global leader in sustainable chemicals, and Sumitomo Mitsui Banking Corporation (SMBC), a prominent international financial institution, inaugurated Thailand’s inaugural sustainability-linked Trade Finance facility. The facility, worth US$ 50 million, aims to support Indorama Ventures’ ongoing commitment to sustainability. This collaboration underscores Indorama Ventures’ leadership in embracing sustainable financing in Thailand.
The newly established facility provides short-term working capital finance, tied to the company’s sustainability performance targets. These targets include a 10% reduction in greenhouse gas (GHG) emissions intensity by 2025 (compared to a 2020 base), increasing post-consumer PET bale input for recycling to 750,000 tons by 2025, and achieving a 25% renewable electricity consumption by 2030.
DK Agarwal, Deputy Group CEO and Group CFO at Indorama Ventures, expressed satisfaction with the partnership, stating, “We are delighted to collaborate with SMBC on this sustainability-linked working capital facility, which aligns with Indorama Ventures’ commitment to integrating sustainability. We are dedicated to incorporating sustainable finance into all aspects of our daily operations as we work towards achieving our ESG targets.”
Rajeev Kannan, Co-Head of Asia Pacific Division at SMBC, highlighted the crucial role of financial services in accelerating the global transition to a net-zero future. He emphasized SMBC’s commitment to supporting the sustainability journey of customers like Indorama Ventures through practical solutions, sustainable finance products, ESG advisory services, and a team of experts, enabling customers to make a positive environmental impact.
Takashi Toyoda, Country Head of SMBC Thailand, emphasized SMBC’s efforts in building a sustainable finance portfolio of JPY 50 trillion by 2030. He stressed the importance of trade finance products that cater to various requirements within the holistic supply chain, emphasizing the collective responsibility in the fight against climate change. Toyoda expressed confidence that partnerships between financial institutions and corporate customers can lead to impactful results, creating a better tomorrow.
Indorama Ventures has secured a total US$2.4 billion in long-term sustainable financing from various national and international financial institutions between 2018–2022. The funds are supporting the company’s expansion and sustainability projects in line with its strategy under Vision 2030 as a purposeful company with ESG at its core.
