AirTrunk secures $16b refinancing with more than 60 banks involved
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The news: AirTrunk closed a $16 billion refinancing that it says is the largest sustainability-linked financing ever in Asia Pacific and Japan.
The refinancing of loans for operational and in-progress data centres in Australia, Hong Kong, Malaysia and Singapore involved more than 60 banks, including Westpac, NAB and CBA, according to media reports citing a press release.
The deal combines four separate loans with sustainability KPIs in multiple countries and currencies, tied to targets on water consumption, renewable energy, net zero emissions by 2030 and gender pay equity.
The numbers: A S$2.25 billion ($2.7 billion) green loan is for AirTrunk's planned SGP2 data centre in Loyang, Singapore, while a second green loan will refinance AirTrunk's Mel1 facility in Melbourne.
The other two loans will cover AirTrunk's existing data centres in Hong Kong, Australia and Melbourne.
The Blackstone and CPPIB-owned business, which operates across Australia and the Asia Pacific and Japan, is refinancing $16 billion of the total $18 billion of acquisition debt put in place in September 2024 when Macquarie Asset Management sold its majority share to the infrastructure investors, valuing the business at $24 billion.
The context: Blackstone and the Canada Pension Plan Investment Board acquired AirTrunk last year in a transaction valuing the company at more than $24 billion.
The company is considering private placements, M&A and asset-backed bonds, and treasurer Luke Stephens told Bloomberg it is sounding out investor appetite in the US and Europe for a securitisation.
What they said: "By linking all A$18 billion of our financing to sustainability, we demonstrate our long-term commitment to scale responsibly, building essential digital infrastructure to power the digital economy, while delivering lasting positive environmental and social impact,” AirTrunk founder and CEO Robin Khuda said.
The sources: Bloomberg, The Australian Financial Review, AirTrunk media release
