Standard Chartered has structured a sustainability-linked trade and working capital facility tied to ESG performance targets for Indorama India.
Standard Chartered has extended a Sustainability-Linked Trade Facility (SLTF) worth INR 540 crore to Indorama India Private Limited as companies in India increasingly integrate ESG goals into financing strategies.
The facility has been structured as a sustainability-linked trade and working capital arrangement linked to predefined sustainability performance targets aligned with Indorama India’s ESG framework.
Under the structure, financing terms are connected to the achievement of sustainability objectives, reflecting a broader trend in India’s banking and corporate sectors toward ESG-linked financing mechanisms.
The transaction highlights rising demand for sustainable finance solutions across industrial and manufacturing businesses as lenders and corporates increasingly align funding structures with environmental, social, and governance commitments.
Angel Sivan said the facility was designed to integrate sustainability objectives into the company’s financing operations.
“We are pleased to partner with Indorama India in supporting its sustainability journey through this tailored SLTF,” Sivan said.
“By integrating ESG-linked targets into the deal structure, we are enabling our clients to align their growth with more responsible business practices. This transaction underscores our commitment to delivering innovative financial solutions that support our clients’ sustainability ambitions,” Sivan added.
Manish Kumar Agarwal said the financing arrangement strengthens the company’s liquidity position while supporting its sustainability agenda.
“The partnership with Standard Chartered reflects our commitment to integrating sustainability into our financing activities. This strengthens our liquidity position and reinforces our dedication to ESG principles,” Agarwal said.
Indorama India operates across fertilisers, agri-inputs, crop solutions, specialty fertilisers, industrial materials, and spandex yarn manufacturing.
The company expanded its fertiliser business through the acquisition of Tata Chemicals’ phosphate fertiliser plant in Haldia, West Bengal, in 2017, followed by the acquisition of Aditya Birla Group’s fertiliser business in Jagdishpur, Uttar Pradesh, in 2022.
Sustainability-linked financing has gained momentum in India as corporates increasingly seek to align funding strategies with climate, operational efficiency, and ESG objectives. Banks operating in India have also been expanding sustainable finance offerings across trade finance, supply chain finance, and working capital solutions.
The latest facility reflects how ESG-linked structures are moving beyond large infrastructure and energy projects into broader industrial and manufacturing sectors, particularly among companies with expanding domestic operations and supply chain footprints.
Key Takeaways
• Standard Chartered extended an INR 540 crore sustainability-linked trade facility to Indorama India
• The financing structure is tied to ESG and sustainability performance targets
• The facility supports Indorama India’s working capital and sustainability initiatives
• Indorama India operates across fertilisers, industrial materials, and spandex yarn manufacturing
• ESG-linked financing continues to expand across India’s industrial and corporate sectors
Source: Standard Chartered