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Allen & Overy advises on Blue Loan to Indorama Ventures

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Bishop Chris
Chris Bishop

Partner

Singapore

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Madhu Mirpuri

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07 December 2020

Allen & Overy has advised International Finance Corporation (IFC), Asian Development Bank (ADB) and DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) on a USD300 million blue loan financing for Indorama Ventures Public Company Limited (IVL), a Thai-listed global producer and recycler of Polyethylene terephthalate (PET) resin, widely used in the manufacturing of plastic bottles.

The financing was the first ever blue loan granted to a global plastic resin manufacturer and ADB-assisted independent verification by DNV GL as a blue loan complying with the Green Loan Principles (Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications and Trading Association. 2018) with reference to the Blue Natural Capital Financing Facility’s Blue Bond Guidelines.  The financing will be used by IVL to increase its recycling capacity in Thailand, Philippines, India, Indonesia and (for IFC and DEG loans) Brazil, which is expected to lead to the recycling of 50 billion PET bottles globally a year by 2025, thereby reducing marine plastic pollution.

A blue loan is an innovative instrument whereby the funds raised are certified for use to support the sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ecosystem health – which help to boost the blue economy.

The A&O team was led by partner Chris Bishop with support from counsel Anchalee Limviriyalers, senior associate Peerajit Chanmolee and associates Jessica Lee and William Khun

The transaction represents a continuation and further development of the support we are providing to multinationals and other clients on ESG related financings and their associated response to the COVID-19 pandemic.  We also recently advised IFC on a THB4.5 billion (USD144 million) green loan to Thai corporate Asset World Corp and are currently advising on several other green financings across the region.