Thailand-based chemical producer Indorama Ventures has secured a seven-year loan amounting to US$200 million from the International Finance Corporation ( IFC ).

Indorama, one of the world’s leading recyclers of polyethylene terephthalate ( PET ) for making clothing fibres and food containers, will use the proceeds to pursue its sustainability programmes in India, Thailand and Indonesia, and its circular economy aspirations.

The loan may be converted into a sustainability-linked facility based on mutually agreed sustainability targets in the future.

Jane Yuan Xu, IFC’s country manager for Thailand and Myanmar, says the loan illustrates IFC’s support for circular economy while enhancing waste management in emerging markets.

The funds will be used to finance sustainability initiatives that bolster Indorama’s strategic footprint in PET recycling. These include enhancing efficiency at the company’s recycling facilities in Nakhon Pathom and Rayong, Thailand, launching a state-of-the-art plant in Karawang, Indonesia, and establishing new recycling plants in India.

Additionally, the financing will reimburse costs the company incurred for sustainability projects in 2023 and 2024.

Indorama maintains a sustainable and diversified financing strategy, including an inaugural US$300 million industry-first blue loan in 2020, which comprised a US$150 million senior loan from IFC and parallel loans of US$150 million from the Asian Development Bank ( ADB ) and Deutsche Investitions-und Entwicklungsgesellschaft ( DEG ).

“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,” says Yash Lohia, chairman of Indorama’s 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.”