DBS Bank India has extended a sustainability-linked trade finance facility of Rs 670 crore to Indorama India Private Limited, marking the largest sustainability-linked trade transaction arranged by the bank so far. Indorama India is a wholly owned subsidiary of Indorama Corporation Pte Ltd.
The facility is designed to support sustainable manufacturing practices in the fertiliser sector, with a particular focus on operations in eastern India. It links trade financing to clearly defined environmental performance benchmarks, aligning capital access with progress on sustainability goals.
Under the structure, Indorama India’s financing is connected to improvements in greenhouse gas emissions intensity, water use intensity and energy efficiency. The transaction is aligned with globally recognised Sustainability Linked Loan Principles, ensuring that performance against targets remains measurable and independently verifiable.
The facility comprises a combination of Letters of Credit, Purchase Invoice Financing and Buyer’s Credit Import Advances. These instruments are intended to support the company’s working capital requirements related to trade, procurement and ongoing operations. The transaction also underscores DBS Bank India’s capabilities in structuring cross-border and sustainability-focused trade finance solutions.
Commenting on the deal, Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking, Financial Institutions and SMEs, DBS Bank India, said that sustainability-linked financing enables the bank to align responsible banking practices with long-term environmental outcomes. He added that the transaction reflects the bank’s ability to deliver complex financing structures while supporting clients in embedding sustainability into their growth strategies.
Indorama India said the facility strengthens its financial position while reinforcing its sustainability commitments across its manufacturing operations.
The transaction adds to DBS Bank India’s growing portfolio of sustainable finance deals in 2025. In December, the bank acted as sole adviser and green loan coordinator for a Rs 1,280 crore green loan facility for Tata Realty and Infrastructure Ltd, while in June it structured a USD 80 million green financing for Aseem Infrastructure. At the group level, DBS Bank Indonesia announced a USD 20 million sustainability-linked trade finance facility for PT Indo Rama Synthetics Tbk earlier this year.
Indorama India Private Limited is a major fertiliser manufacturer with operations spanning phosphatic and urea fertilisers, agri inputs and industrial materials. The company operates fertiliser plants in West Bengal and Uttar Pradesh and also runs a spandex yarn manufacturing facility in Himachal Pradesh.
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