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Allen & Overy advises Indorama Ventures on the largest sustainability-linked bond issued in Thailand

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Jaggs Stephen
Stephen Jaggs

Partner

Bangkok

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Anchalee Limviriyalers

Counsel

Bangkok

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Chanmolee Peerajit
Peerajit Chanmolee

Senior Associate

Bangkok

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Wiriyatornphan Natthicha
Natthicha Wiriyatornphan

Associate

Bangkok

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Pichaya Ruamsub

Associate

Bangkok

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Mirpuri Madhu
Madhu Mirpuri

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Hong Kong

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03 November 2021

Allen & Overy has advised Indorama Ventures Public Company Limited (IVL) on the issuance of a triple-tranche sustainability-linked bond (SLB) to the value of THB10 billion (approximately USD300 million) to institutional and high-net-worth investors in Thailand.

This is the largest SLB ever issued in Thailand and it is also the first SLB in Thailand that offers sustainable investment opportunities not only to institutional investors, but also to individual high-net-worth investors.

The triple-tranche structured issuance includes five, seven and 10.5-year tenors, which offer coupon rates in a range of 2.48% to 3.60% per annum. The bond has been assigned an "AA-" credit rating by TRIS Rating, which operates as a strategic partner in Thailand of S&P Global.

The issuance takes into consideration IVL’s Sustainability-Linked Financing Framework, which guides its approach and strategy towards sustainability-linked instruments that are correlated to the achievement of sustainability performance targets (SPTs).

Partner and head of A&O’s Bangkok Banking practice, Stephen Jaggs commented: "We are delighted to have advised long-standing and valued client IVL on this prominent SLB mandate, which has set a new benchmark in the market. The issuance represents a continuation and further development of the support we are providing to clients on environmental, social and corporate governance (ESG) related financings in Thailand and across the Asia-Pacific region."

Counsel Anchalee Limviriyalers added: "Enthusiasm and demand for IVL’s SLB was significant from all types of qualified investors in Thailand in what was a clear demonstration of the willingness to invest in sustainability and ESG related debt securities. We expect this trend to accelerate as issuers across a broad range of sectors increasingly look to issue bonds that link coupon rates to independently verified achievements against set SPTs."

The A&O team in Bangkok was led by partner Stephen Jaggs, with substantial support from counsel Anchalee Limviriyalers, senior associate Peerajit Chanmolee and associates Natthicha Wiriyatornphan and Pichaya Ruamsub.

Headquartered in Bangkok and listed on the Stock Exchange of Thailand, IVL is the world’s largest manufacturer by volume of 100% recyclable polyethylene terephthalate (PET).

Our team’s involvement in this latest deal follows our significant role last year advising IVL on the establishment of its debut local medium-term note programme, including the issuance of unsubordinated and unsecured debentures to the value of THB9bn (approximately USD270m) to institutional and high-net-worth investors in Thailand.

Our teams in Singapore and Bangkok last year also advised the International Finance Corporation (IFC) on a landmark USD300m financing package arranged by IFC for Indorama Ventures Global Services Limited, a subsidiary of IVL, in a transaction that marked IFC’s first 'blue loan' exclusively focused on addressing marine plastic pollution.