Bank DBS Indonesia introduces first ever Sustainability-Linked Trade Finance Facility for PT. Indo-Rama Synthetics Tbk | Bahasa
Indonesia.14 Jan 2025.3 min read
Indonesia, 14 Jan 2025 - Bank DBS Indonesia (DBS), a trusted advisor for sustainable finance, is proud to announce the launch of a USD 20 million sustainability-linked trade finance facility (SLTF) for PT. Indo-Rama Synthetics Tbk, a publicly listed integrated spun yarns and polyester producer and a subsidiary of Indorama Corporation Pte. Ltd., Singapore (Indorama). This innovative facility marks a significant milestone as the first of its kind for Indorama, reflecting their commitment to embedding sustainability into their operations. Previously in 2024, Bank DBS Indonesia and Indorama have signed a USD 10 million credit facility to facilitate the transition from captive-coal powerplant as well as improving energy efficiency of the Purwakarta factory, in which contributes towards reducing Indorama’s carbon footprint.
The SLTF is designed to align with Indorama’s sustainability targets, supporting their efforts to drive environmental, social, and governance (ESG) improvements. Key performance indicators (KPIs) linked to the facility will focus on i) reducing Scope 1 & Scope 2 GHG emission intensity, ii) reducing energy intensity, and iii) improving water use intensity. Achieving these targets will lead to preferential financing terms, reinforcing Indorama’s commitment to sustainable business practices.
President Director PT Bank DBS Indonesia Lim Chu Chong said, “At Bank DBS Indonesia, we are dedicated to providing reliable banking solutions for corporations seeking a trusted partner for growth, particularly in their transition toward greener business practices. Our commitment to supporting our clients’ sustainability journeys is exemplified by the launch of this first-ever sustainability-linked trade facility for Indorama, highlighting our shared vision for a greener, more sustainable future. Guided by our aspiration to be the ‘Best Bank for a Better World,’ we integrate Environmental, Social, and Governance (ESG) principles into all aspects of our operations, fostering meaningful impact for businesses, the environment, and the community.”
Managing Director and Group Chief Financial Officer of Indorama Vishnu Baldwa added, “We are excited to work with our long-term partner, Bank DBS Indonesia, on this pioneering initiative, this facility not only supports our trade financing needs but also drives our continuous commitment to achieving measurable ESG improvements across our operations. Indorama has always been committed towards creating a sustainable future and we are glad to join hands with Bank DBS Indonesia again to achieve this.”
DBS Bank's commitment to sustainability is reflected in its concrete steps, becoming the first Singaporean bank to pledge to achieve net-zero emissions by 2050 or earlier. The Bank has outlined its roadmap in the Path to Net Zero report, launched in 2022, which targets decarbonization in nine key industry sectors. Awarded as Indonesia’s Best Bank for ESG at Euromoney's Awards for Excellence 2024, Bank DBS Indonesia remains dedicated to empowering businesses to adopt sustainable practices through innovative financial solutions, contributing to a better and more sustainable future for all.
For more information about Bank DBS Indonesia’s sustainable financing solutions, visit this page
The SLTF is designed to align with Indorama’s sustainability targets, supporting their efforts to drive environmental, social, and governance (ESG) improvements. Key performance indicators (KPIs) linked to the facility will focus on i) reducing Scope 1 & Scope 2 GHG emission intensity, ii) reducing energy intensity, and iii) improving water use intensity. Achieving these targets will lead to preferential financing terms, reinforcing Indorama’s commitment to sustainable business practices.
President Director PT Bank DBS Indonesia Lim Chu Chong said, “At Bank DBS Indonesia, we are dedicated to providing reliable banking solutions for corporations seeking a trusted partner for growth, particularly in their transition toward greener business practices. Our commitment to supporting our clients’ sustainability journeys is exemplified by the launch of this first-ever sustainability-linked trade facility for Indorama, highlighting our shared vision for a greener, more sustainable future. Guided by our aspiration to be the ‘Best Bank for a Better World,’ we integrate Environmental, Social, and Governance (ESG) principles into all aspects of our operations, fostering meaningful impact for businesses, the environment, and the community.”
Managing Director and Group Chief Financial Officer of Indorama Vishnu Baldwa added, “We are excited to work with our long-term partner, Bank DBS Indonesia, on this pioneering initiative, this facility not only supports our trade financing needs but also drives our continuous commitment to achieving measurable ESG improvements across our operations. Indorama has always been committed towards creating a sustainable future and we are glad to join hands with Bank DBS Indonesia again to achieve this.”
DBS Bank's commitment to sustainability is reflected in its concrete steps, becoming the first Singaporean bank to pledge to achieve net-zero emissions by 2050 or earlier. The Bank has outlined its roadmap in the Path to Net Zero report, launched in 2022, which targets decarbonization in nine key industry sectors. Awarded as Indonesia’s Best Bank for ESG at Euromoney's Awards for Excellence 2024, Bank DBS Indonesia remains dedicated to empowering businesses to adopt sustainable practices through innovative financial solutions, contributing to a better and more sustainable future for all.
For more information about Bank DBS Indonesia’s sustainable financing solutions, visit this page
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