Corporates

Indorama Ventures Closes $500mn Syndicated Term Loan Facility

Thailand headquartered Indorama Ventures has successfully closed a US $500 million syndicated term loan facility, arranged by HSBC and Standard Chartered Bank.

This loan is part of its program to refinance upcoming maturities totaling $1.1 billion, with a focus on generating ample liquidity, strengthening its financial structure, and diversifying sources of financing.

Under its IVL 2.0 evolved business strategy, the company is optimising its assets and deleveraging its business to drive enhanced earnings quality in an era of higher interest rates and a changed landscape.

“This includes debt refinancing of $700 million for 2024 and $400 million for 2025, to be completed in the first half of 2024,” the Aloke Lohia led company said in a press release.

This latest syndicated facility has a built in maturity of five years and will fund working capital and refinance previous issuances, including a $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 $255 million through a five 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.

“We are delighted to secure this facility which follows other successful raisings in the first half of this year under our refinancing program,” DK Agarwal, Deputy Group CEO at Indorama Ventures said.

“As we navigate the changed landscape through our 2.0 strategy, this transaction is our commitment to ensure financial stability, responsible management, and a diversified financing approach,” he added.

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