Indorama Ventures Raises THB 10 Billion In Oversubscribed Debenture Issue

Indorama Ventures Public Company Ltd, a global sustainable chemical producer, has successfully raised THB 10 billion through a debenture issue targeting institutional and high-net-worth investors. The oversubscribed issue, achieved at lower average spreads compared to the company’s previous issuance in 2023, reflects strong investor confidence.

The debentures, unsubordinated and unsecured, hold an “AA-” rating with a stable outlook from TRIS Rating as of February 9, 2024. They are divided into tranches with maturities ranging from 2 years 9 months to 12 years, offering competitive coupon rates. The issue attracted significant interest, prompting the company to exercise a green shoe option, increasing the initial issuance size from THB 6 billion to THB 10 billion.

Funds raised will primarily be used to refinance existing bonds maturing in 2024, with the remainder allocated for general business purposes. This move aligns with Indorama Ventures’ evolved business strategy, focused on deleveraging and driving enhanced earnings amidst a challenging environment of higher interest rates.

D K Agarwal, Deputy Group CEO and Group CFO at Indorama Ventures, emphasized the company’s commitment to sustainable long-term growth and financial strength. He stated, “To leverage our unmatched global footprint and maintain our industry leadership, we are taking bold steps to strengthen our debt profile, enhance our earnings quality and generate cash under a policy of strict capital discipline and international standards of leverage.”

Indorama Ventures’ proactive approach to securing liquidity, demonstrated by its diversified funding sources and previous successes in the debentures market, underscores its resilience and adaptability in navigating evolving market conditions.