Press Release

Bangkok, 8 October 2019: Indorama Ventures Public Company Limited (IVL), a world-class chemicals company, has announced to issue subordinated perpetual debentures for Baht 15 billion. On 26 September 2019, TRIS has assigned a company rating to IVL of “AA-“ with “Stable” outlook and an issue rating of “A” with “Stable” outlook for the proposed subordinated perpetual debentures.

The proposed issuance will come with a coupon of 5.00% per annum paid quarterly. The coupon of 5.00% is attractive in the decreasing interest rate environment wherein the policy rate is currently 1.50% and the Government bond yield is 1.40% for 5 years and 1.49% for 10 years. The company has appointed Bangkok Bank, Krungthai Bank, Kasikornbank and Siam Commercial Bank to manage the sale of the subordinated perpetual debentures to investors, for which the subscription period will be from 4th November 2019 to 7th November 2019.

IVL ranks 35^th among the global chemical companies based on total sales in 2018 as per Chemical Week, an international chemical industry publication. During the period 2014 to 2019, IVL has strengthened its business profile and financial profile through broadening of its portfolio of businesses into Integrated PET, Fibers & yarns for apparel & home, hygiene and automotive, integrated oxides and derivatives, Specialty chemicals and Packaging. Further, the global manufacturing footprint has increased to 101 manufacturing sites in 31 countries on the five major continents of Asia, North America, Europe, South America and Africa. During this period, product diversification has led to addition of high value added products together with necessity products and increased intellectual property in the form of brands, patents, trademarks and production technologies.

Mr. Aloke Lohia, Group CEO of Indorama Ventures said, “To keep pace with the growth and diversification, the management bandwidth has been expanded at the Corporate Office, Regional Offices and Business segments. The strategic direction and prudent growth initiatives taken in the last 5 years has resulted in creating multiple revenue streams and cash flow streams which will lead to long term sustainable growth.”

Mr. Sanjay Ahuja, CFO of Indorama Ventures added, “IVL has strengthened its business and financial profile over the last 5 years in integrated world class operations spread geographically in all major consumption markets. Our diversity and leadership position has earned us our investment grade rating and we have been able to appropriately leverage on this strength.”

The strategy and business direction has received recognition from TRIS rating which upgraded the credit rating of IVL from “A+” with stable outlook to “A+” with positive outlook in year 2017 and subsequently upgraded the credit rating of IVL from “A+” with positive outlook to “AA-” with stable outlook in August 2018. At the same time, the credit rating of subordinated perpetual debentures was upgraded from “A-” with “Stable” outlook to “A” with “Stable” outlook.”

DJSI recognized long term sustainability model of IVL which resulted in IVL’s maiden entry into the Dow Jones Sustainability Emerging Market Index (DJSI Emerging Markets) in year 2017. On increase in ESG rating score in year 2019, IVL made its maiden entry into the Dow Jones Sustainability World Index (DJSI World) and for three years consecutively in the DJSI Emerging Markets. To further the company’s declared intention to play a leading role in plastic waste mitigation through recycling, it has already expressed its intention to invest further into the construction of PET recycling plants, the expansion of current plants and the acquisition of third-party recycling plants across the globe. This will meet with customer and government targets to use higher proportions of recycled PET, or rPET, in plastic packaging.

IVL reported sales of Baht 376 billion in the last twelve months ended on June 30, 2019, core EBITDA of Baht 45 billion, core net profit of Baht 21 billion and generated cash flow from operations of Baht 38 billion. IVL has consistently paid dividends to its shareholders. IVL’s financial position has been strengthened with an increase in cash flow from operations and raising of Baht 31 billion in cash equity from the exercise of warrants during 2017-18. IVL has diversified sources of financing with a mix of operating cash flows, commercial borrowings from banks including Green loans, debentures/bonds in the domestic and international debt capital markets, and equity.

Investors can find further details from supporting documents and attachments detailing the sale of perpetual debentures as well as from the drafted prospectus at www.sec.or.th