DBS Bank India has achieved a milestone in its journey to become a responsible bank, with a huge financial deal with Indorama India Private Limited being struck. This transaction entails an extension of a Sustainability-Linked Trade Facility of ₹670 crore, which is the largest Sustainability-Linked Trade Facility ever designed by the bank. Indorama India Private Limited is a fully owned subsidiary of an internationally renowned company, Indorama Corporation Pte Ltd, and this collaboration is an attempt to incorporate the principles of environmental, social, and governance concepts directly into the working environment of the Indian industrial scenario. By making financial resources meet ecological responsibility, the two organisations are establishing a new standard of how large corporate expansion can be carried out while keeping in mind the requirements of global sustainability.
Facilities and primary objective
The major ₹670 crore plant is mainly aimed at strengthening the fertiliser industry in the eastern part of India, where the efficiency of manufacturing processes and the use of resources take the first place in priority. The structure is carefully structured to ensure that Indorama India has the liquidity it needs to handle the complex working capital needs of the business, and at the same time, encourage the use of more environmentally friendly manufacturing technologies. This transaction underscores how trade finance is changing such that the credit delivery is no longer about serving the transactional purposes but rather a trigger of a significant environmental change.
The facility offered by DBS Bank India is not a conventional loan but a complex Sustainability-Linked Trade Facility, which entails a number of important financial elements. It involves the offering of Letters of Credit, Purchase Invoice Financing, as well as Buyer’s Credit Import Advance. All these tools will help Indorama India to effectively run its procurement functions, its trade requirements, and its business operations. The inclusion of these distinctive trade finance products into a sustainability-based structure by the bank is a process that will ensure that the company is accorded the freedom to continue with its strong operations while meeting a set of strict performance measures.
The basis of this innovative structure has been developed on clear performance targets that can be measured and proven. The facility helps establish a real incentive for the company to focus on efficiency in its resources by connecting the terms of the trade finance with these objectives. This strategy serves to ensure that even as Indorama India intends to further its business goals within the fertiliser market, the firm is always keen on enhancing its operational imprint. The deal is specifically structured so that it becomes transparent, and therefore, a clear evaluation of progress can be done in terms of measuring the facility against the set standards during the facility period.
Commitment and transaction
The key aspect of this deal is the sustainability performance targets to be realised by Indorama India. These goals are aimed at three areas of environmental impact of crucial importance, namely reduction in the intensity of greenhouse gas emissions, optimisation of water use intensity, and reduction in the intensity of energy consumption. The partnership is aimed at addressing some of the most pressing issues of the manufacturing industry today by focusing on the three pillars. The emphasis on metrics of intensity means that the environmental gains are proportionate to the production, which fosters a model of industrial growth that would be truly sustainable.
To guarantee the integrity of these commitments, the facility has been designed in a manner that is in accordance with globally accepted Sustainability-Linked Loan Principles. Such alignment offers a unified system of tracking and reporting the progress, where the environmental outcomes are credible and effective. The international standards address a common vision of both the DBS Bank India and Indorama India to have a part to play in ensuring a low-carbon economy, but at the same time continue producing at high standards needed in the fertiliser industry.
This deal represents a larger trend of sustainable finance endeavours organised by DBS Bank India during 2025. The bank previously in the year served as the exclusive adviser and organiser of a huge green loan facility of ₹1,280 crore to Tata Realty and Infrastructure Ltd. The bank organised a green financing deal of $80 million to Aseem Infrastructure in June 2025.
CRISIL Coalition Greenwich named DBS Bank India the Best Bank in Corporate Banking and Best Bank in Corporate Cash Management in 2025. In 2024, Global Finance named the bank the Best Bank in India in terms of sustainable financing. These prizes recognise the extent to which the institution is committed to excellence and an innovator in the area of responsible and sustainable corporate finance.
Conclusion
The partnership between DBS Bank India and Indorama India Private Limited would be a strong example of how the financial sector can bring change in the industry. With this Sustainability-Linked Trade Facility of ₹670 crore, Indorama India can not only positively impact its operational efficiency but also make a long way towards achieving its environmental objectives.
The agreement solidifies the concept that sustainable finance is an essential instrument to help the shift of the main sectors of the economy, such as the fertiliser industry, towards a more responsible type of production. With DBS Bank India, moving on its wave of successful green and sustainability-related transactions, it remains the leader in the trend of matching capital with the health of the environment and economy in the long term.
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