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Indorama Ventures succeeds in bond debut for refinancing

Sep 16. 2019
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Indorama Ventures Public Co Ltd (IVL), a global chemical producer, has issued its first-ever USD-denominated senior unsecured Reg S fixed-rate notes in an international offering to foreign institutional investors.

This represents one of the few US dollar bond issuances from Thai corporates.

The bonds were offered under the company’s subsidiary, Indorama Ventures Global Services Ltd, and are guaranteed by the company. 

In addition, IVL’s bonds are unrated and have a tenure of five years with an interest rate of 4.375 per cent per annum. Thet are also listed on the Singapore Exchange Securities Trading.

The transaction raised US$300 million (Bt9.151 billion) on the back of an order book which peaked at more than US$900 million (Bt27.453 billion).

Eventually, the final order book settled at US$650 million (Bt19.827 billion), representing a final oversubscription rate of more than twice the issue amount. 

The bonds were allocated 66 per cent to Asian investors, with 34 per cent to EMEA investors. On the other hand, around 88 per cent of the allocation was given to fund managers, while the remaining 12 per cent is allocated to private banks, discretionary portfolio management accounts of private banks, and corporates.

This unprecedented success is a testimony to the confidence that the debt capital markets have in IVL, said a release from the company.

The proceeds of the bonds will be used for refinancing and to support future growth and the investment plans of IVL.

Sanjay Ahuja, the CFO of Indorama Ventures said, “We are very pleased with the response received from our maiden bond issuance in the international markets. The robust demand from the international investors shows their confidence in IVL’s strategy and growth prospects, as well as confirms our strong international profile and leading market position in the chemical industry. I want to thank the transaction team for their engagement and commitment to making the IVL debut a great success.”

Standard Chartered Bank acted as the sole global coordinator. ANZ, Bank of America Merrill Lynch, HSBC, and Standard Chartered Bank acted as joint lead managers and joint book runners.

IVL, listed in Thailand, is a leading petrochemicals producer, with a global manufacturing footprint across Africa, Asia, Europe and the Americas.

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