IVL Issues Thailand’s Largest Sustainability- Linked Bond with 3.60 Coupon Rate

Indorama Ventures Public Company Limited (IVL) has issued and offered a THB 10 billion triple- tranche Sustainability- Linked Bond (LB), showcasing the company’ s long-standing commitment to sustainable growth at an offering price of THB 1,000 per unit. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The Bond is a part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability-Linked Loan Principles.

The SLB is linked to the company’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

 

Tranche 1: the “Sustainability-Linked Bonds of Indorama Ventures Public Company Limited No. 1/2021 Tranche 1 due 2026” with a tenor of 5 years for a principal amount of Baht  3,000,000,000 with the coupon rate of 2.48 per cent per annum, paying every three months.

Tranche 2: the “Sustainability-Linked Bonds of Indorama Ventures Public Company Limited No. 1/2021 Tranche 2 due 2028” with a tenor of 7 years for a principal amount of Baht 2,000,000,000 with the coupon rate of 3.00 per cent per annum, paying every six months.

Tranche 3: the “Sustainability-Linked Bonds of Indorama Ventures Public Company Limited No. 1/2021 Tranche 3 due 2032” with a tenor of 10.5 years for a principal amount of Baht 5,000,000,000 with the coupon rate of 3.60 per cent per annum, paying every six months.

 

IVL stated that the purpose of this issuance is to repay the debentures of the company on the maturity date and to use for working capital.