DBS Bank India Extends INR 670 Cr Sustainability Linked Trade Facility To Indorama India The facility is aimed at supporting sustainable manufacturing practices within the fertiliser sector, particularly in eastern India.
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DBS Bank India has extended a sustainability linked trade facility of INR 670 crore to Indorama India Private Limited, marking the largest such transaction arranged by the bank to date. Indorama India is a wholly owned subsidiary of Indorama Corporation Pte Ltd.
The facility is aimed at supporting sustainable manufacturing practices within the fertiliser sector, particularly in eastern India.
The transaction links trade finance with clearly defined environmental performance targets. Under this structure, Indorama India's access to capital is connected to progress made in reducing greenhouse gas emissions intensity, water use intensity and energy intensity. The facility aligns with globally recognised Sustainability Linked Loan Principles, ensuring that performance against targets is measurable and verifiable.
The facility includes a mix of Letters of Credit, Purchase Invoice Financing and Buyer's Credit Import Advance. These instruments are intended to support Indorama India's working capital needs related to trade, procurement and ongoing business operations. The deal also highlights DBS Bank India's experience in structuring cross border and sustainability focused financial solutions.
Divyesh Dalal, Managing Director and Country Head Global Transaction Services, Corporate Banking Financial Institutions and SMEs at DBS Bank India, said, "Responsible banking is central to how we engage with our clients, and sustainability linked structures allow us to align financing with long term environmental outcomes. This mandate reflects our ability to deliver complex, cross border solutions and support clients as they integrate sustainability into their growth plans."
Indorama India said the facility strengthens both its financial position and sustainability commitments.
The transaction adds to a series of sustainable finance deals arranged by DBS Bank India in 2025. In December, the bank acted as sole adviser and green loan coordinator for a green loan facility of INR 1,280 crore for Tata Realty and Infrastructure Ltd. In June, it structured a USD 80 million green financing for Aseem Infrastructure.
At a group level, DBS Bank Indonesia announced a USD 20 million sustainability linked trade finance facility for PT Indo Rama Synthetics Tbk in January 2025.
Indorama India Private Limited is a major fertiliser manufacturer in India 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.
