ADB, IFC, DEG sign blue loan to boost recycling, cut ocean plastic waste
The Asian Development Bank, Germany's DEG, and the International Finance Corporation have signed loans totalling $300 million with Indorama Ventures Public Company Limited (IVL) to reduce the environmental impact of plastic and promote a circular economy by boosting the capacity of IVL’s plastic recycling plants in India, Indonesia, the Philippines, and Thailand.
The plants will recycle polyethylene terephthalate plastics widely used in beverage bottles. The finance package comprises $50 million from ADB and $50 million from the ADB-administered Leading Asia’s Private Infrastructure Fund. A $150 million loan will be provided by the International Finance Corporation, and $50 million from DEG – Deutsche Investitions- und Entwicklungsgesellschaft.
ADB’s loan is its first independently verified nonsovereign blue loan, following Blue Natural Capital Financing Facility’s Blue Bond Guidelines.