EdgeConneX executes $3.3 bn in innovative sustainability-linked financing
EdgeConneX®, the pioneer in global Hyperlocal to Hyperscale Data Center Solutions, announces the successful execution of $3.3 billion in innovative sustainability-linked financing, which enables the development of critical digital infrastructure to support customers’ global data center requirements. The significant scale of these transactions is also recognized by IJGlobal, a leading market intelligence firm for the energy and infrastructure finance industry, with the Digital Infrastructure Deal of the Year Award 2022 in the data center category.
In October 2022, EdgeConneX, the EQT-owned data center developer, reached financial close of a €2.4 billon sustainability-linked (re)financing EdgeConneX pan-EMEA data center portfolio of operational facilities across seven jurisdictions and provided CapEx facilities to support future developments. This financing is arranged across three tranches – a term loan, a CapEx facility, and a revolving credit facility, providing an optional line of credit if needed. Beyond consolidating EdgeConneX pan-EMEA portfolio, this deal allows it to transition from stand-alone project financing to a structured corporate debt package – thereby unlocking more flexibility and funding capacity to support anticipated growth across the region. In addition, this deal represents Europe’s first data center platform financing and is rated as a pathfinder sustainability-linked portfolio financing.
Separately, in June 2022, funds managed by Ares Management’s Infrastructure Debt strategy, committed a delayed draw sustainability-linked global debt facility to EdgeConneX. The debt facility commits up to $1 billion and can be used to fund the development and construction of EdgeConneX growing global development pipeline. In addition, the innovative funding regime in Euros and US dollars via a structured corporate debt package unlocks more flexibility and funding capacity to support EdgeConneX anticipated global growth.
Both facilities include sustainability-linked margin adjustments, whereby the interest rate payable is directly correlated to EdgeConneX achieving specific pre-determined sustainability targets. These targets align with EdgeConneX holistic ESG sustainability strategy, which includes a goal of becoming a carbon-, waste- and water-neutral data center provider by 2030 and developing and operating a data center platform powered by 100% renewable energy.
“We are honored by the IJGlobal Award distinction for our innovative financing structures that can be replicated globally,” comments Joe Harar, Chief Financial Officer for EdgeConneX. “Sustainability is a necessity, and EdgeConneX has adopted sustainability principles across all aspects of our business. These financings leverage EdgeConneX Green Finance Framework and enable us to execute growth plans by reinforcing our commitment to delivering energy-efficient and innovative sustainable solutions for our customers anywhere in the world.”
The greenfield element of these transactions wins EdgeConneX an IJGlobal award in this category in conjunction with the refinancings, which played a significant part in the deal and its reason for winning an award. The IJGlobal Awards took place in London on March 9, 2023, celebrating the best-in-class transactions and organizations across the international infrastructure and energy sectors.
EdgeConneX owns and operates 60+ data centers across 50 unique markets throughout 30 countries. The company’s portfolio includes 200+ far edge and EdgePop deployments and 500+MW of capacity deployed and/or in development worldwide. Providing excellence and expertise across all deployment phases, EdgeConneX also specializes in build-to-suit data center facilities for Hyperscalers serving as the backbone of their cloud computing products for consumers globally.
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