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Sustainability-Linked Bonds

Indorama: missed 2025 SLB targets

Written by Jeannette Leong

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Thailand-headquartered Indorama Ventures, one of the world's leading producers and recyclers of polyethylene terephthalate (PET) and a manufacturer of specialty chemicals and fibres, issued three Sustainability-Linked Bonds (SLBs) in 2021 linked to greenhouse gas emissions intensity, recycled PET input, and renewable electricity consumption. 

Indorama missed its 2025 targets for emissions intensity and recycled PET input, with PET input reaching only 61% of target. Rather than a coupon step-up, the bonds now require a combined THB9.5 million remedy in carbon credits or Energy Attribute Certificates.

How closely that remedy matches the actual shortfall depends on the price and quality of credits purchased, and for the recycling target, it does not directly address the metric. 

A third target, for renewable electricity by 2030, remains untested, with 2025 progress at 7.68%, trailing Indorama's own 10% interim milestone.

About the author

Jeannette Leong

Jeannette Leong

Research Associate, APAC

Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.

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