Indorama Ventures receives $200 million loan to finance circular economy

03 July 2024 17:56


Bangkok - The International Finance Corporation, or IFC, has granted a $200 million loan to Indorama Ventures, a chemical company that is one of the world’s leading PET recycler. The seven-year note will finance the expansion of Indorama’s sustainability programs in India, Indonesia, and Thailand.

When Indorama Ventures wanted to improve its PET recycling facilities, the Bangkok, Thailand-based company turned to the International Finance Corporation, or IFC, a member of the World Bank Group that helps private companies in emerging markets.

Now Indorama will be using $200 million from a seven-year loan to revamp its recycling facilities at Nakhon Pathom and Rayong in Thailand, launch a state-of-the-art plant in the Indonesian city of Karawang, and build new recycling plants in India, according to a July 1 press release. The loan will also cover sustainability projects completed last year and this year.

“Our continued collaboration with IFC is an important part of our ongoing investment in sustainability, allowing us to expand our recycling capabilities and make a meaningful impact on the environment and communities in key emerging markets,” said Yash Lohia, chairman of the Indorama Ventures’ ESG Council. “As a global leader in the chemical industry, Indorama Ventures is dedicated to setting new benchmarks for sustainable practices and promoting a circular economy worldwide.”

Jane Yuan Xu, the IFC’s country manager for Thailand and Myanmar, said the financing demonstrates the IFC’s determination to foster circular economies that recycle and reuse products to reduce the extraction of virgin materials that emit greenhouse gases, causing climate change. “Together, we aim to leverage recycling as a powerful tool in managing plastic waste and advancing broader sustainability and climate change goals,” Xu said.

The loan will convert into a “sustainability-linked facility” reflecting sustainability targets that IFC and company leaders will detail in the future. ce/jd

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