SCB confirms six-billion-baht Sustainability-Linked Loan to Indorama Ventures
Siam Commercial Bank has reinforced its commitment to promoting sustainable finance with a six-billion-baht Sustainability-Linked Loan (SLL) to Indorama Ventures (IVL), a global chemical company and the world’s largest producer of recycled PET resins for beverage packaging. The loan will be used for managing liquidity and as working capital to enhance operational capability. Siam Commercial Bank is the first Thai bank to provide this type of loan to IVL.
Mr. Yunyong Thaicharoen, Senior Executive Vice President and Chief Wholesale Banking Officer of Siam Commercial Bank, stated, “SCB places an emphasis on the ESG principles for environmental sustainability by integrating an environmental perspective into the development of a comprehensive range of financial products and services. In addition to embracing a customer-centric approach and designing a credit approval procedure that meets the interests of a variety of customers, the Bank also closely considers environmental and social concerns. This is one approach to supporting Thailand’s transition to a circular and low-carbon economy. This Sustainability-Linked Loan arrangement supporting Indorama Ventures’ operations is one of the Bank’s accomplishments in developing a wide variety of financial instruments to promote sustainability and satisfy the demands of clients in every way. This time, IVL has entrusted the Bank to be the first Thai bank to provide a Sustainability-Linked Loan (SLL) for the company in the amount of six billion baht. We are confident in the IVL’s vision for sustainability and effective international practices and are positive that this partnership will contribute to the IVL’s envisioned sustainability goals of net-zero global emissions.
DK Agarwal, Chief Executive Officer of Indorama Ventures PCL, said, “We are pleased to obtain this Sustainability-Linked Loan (SLL) from Siam Commercial Bank, which is in line with our financial plan to access a variety of financial sources. It also reinforces IVL’s achievement in pursuing our sustainability ambition and contributing to the world’s better future. The achievement of this Sustainability-Linked Loan (SLL) demonstrates that local and international financial institutions have gained confidence in our sustainability performance, particularly Siam Commercial Bank, the first Thai bank in which IVL has placed its trust to support this financial instrument. The company is committed to fostering sustainability and growth for a higher socioeconomic level over the long run.”
The Sustainability-Linked Loan (SLL) of six billion baht is a long-term loan provided by the Bank to IVL’s subsidiary Indorama Ventures Global Services Co., Ltd. (IVGS). The goal is to manage liquidity in accordance with future performance, with criteria calling for a cut in interest rates for the year in which the company obtains an ESG Score from S&P Global higher than the score established by the Bank. The company intends to draw down loans in June 2022.
