The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a loan of up to $150 million to Thailand-based Indorama Ventures Global Services Limited (IVGS), a subsidiary of global intermediate petrochemical producer Indorama Ventures Public Company Limited, according to a disclosure.
This is a part of a $300-million loan which will be funded with an IFC A Loan of up to $150 million, and up to $150 million in parallel loans.
IVGS is one of the world’s leading petrochemical producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and the Americas. The company’s portfolio comprises integrated PET, olefins, fibers, packaging and specialty chemicals.
IVL, meanwhile, is a global intermediate petrochemical producer and one of the largest vertically integrated polyester value chain producers in the world, serving global brands in diversified end-use markets including food, beverages, mobility, personal care and health care.
Listed on the Stock Exchange of Thailand, the company has The Lohia Family (SP Lohia and his brother Aloke Lohia) as the largest shareholders with a 64.75 per cent holding while the balance 35.25 per cent of the shares are held by institutional and retail shareholders.
The company has now 110 operating sites in 33 countries across five continents and employs over 24,000 employees.
The proceeds will be used for the expansion of recycled PET capacity and other sustainability projects will be implemented across IVL’s existing and planned manufacturing facilities in Thailand, Philippines, Indonesia, India, and Brazil.
“This will be the first IFC investment to support recycled PET projects in diverse countries across Asia and Latin America to address growing marine and environmental pollution,” the international lender said in the disclosure.
“The project will increase PET recycling capacity in targeted emerging markets to meet the growing demand for recycling PET in food and beverage applications,” it added.
In Thailand, most recently, IFC has proposed to invest 4,500 million baht ($137 million) in Asset World Corp Public Company Limited (AWC), the real estate and hospitality arm of Thai Charoen Company (TCC) Group.
Earlier, the lender had considered a proposal to extend a green loan of up to $100 million to Thailand’s Kiatnakin Bank Public Co., Ltd (KKP) in April. Last November, IFC had joined a $52-million investment in Thailand-based payments firm 2C2P, along with other investors including Cento Ventures, and Arbor Ventures.
The international lender was earlier considering a proposal to invest up to $150 million in the privately-placed, senior, unsecured USD-denominated bonds to be issued by Bank of Ayudhya Public Company, locally known as Krungsri.
In the petrochemical segment, last year, IFC proposed to invest up to $60 million in Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) to help it ramp up the production and distribution of specialty fertilizers in India.