BANGKOK, Thailand — November 3, 2021 — Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, today issued a THB 10 billion triple-tranche Sustainability-Linked Bond (SLB), showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.
The bond is 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 IVL’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.
The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.
On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.
根据该条款，如果未能满足可持续性绩效目标（SPT），则所有批次必须购买能源属性证书（EAC）或自愿碳补偿。成熟度为5年和7年的男高音的测试日期为2025年12月31日，而2030年12月31日为10。5年期男高音。SPT绩效将在测试日期进行独立验证。发行的资助将用于为IVL的公司营运资金和再融资现有债务提供资金。
Indorama Ventures（IVL）首席可持续发展官Yash Lohia表示：“这种债券反映了我们对可持续性的明确承诺，并为公司和我们的利益相关者创造了激励措施。这是我们优化IVL资本结构并为投资者提供一个为化学工业的积极转型做出贡献的机会的重要一步。随着这项债券发行的成功，投资者在将资本转移以使其投资组合与碳中性目标保持一致时，在气候行动上脱颖而出。当今的可持续发展债券证明了金融市场重视我们雄心勃勃的可持续性努力，我们期待着共同努力为更可持续的行业共同努力。”
Thiti Tantikulanan, Capital Markets Business Division Head at Kasikorn Bank (KBank), said, “KBank is pleased to be able to work with IVL on this exciting transaction, which marks an important development in sustainability for the Thai capital market. SLBs are new to Thai investors but the instrument creates the right incentives for issuers and investors. This SLB offers a greater variety of features than the simple coupon adjustment commonly seen in the market. The additional covenants to purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets contributes to ESG goals and provides innovation to the market. The overwhelming investor response to the issuance is testimony to their confidence in IVL and interest in sustainability.”
In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.
Posted November 3, 2021
Source: Indorama Ventures Public Company Limited(IVL)
