Global digital infrastructure firm Equinix has issued S$500 million ($376 million) in green bonds in its inaugural offering in the Singaporean market. Equinix’s debut issuance marks the first US corporate to access the Singapore dollar market in over five years.
The 3.5% senior notes due 2030; the offering closed on March 13. Equinix said that it will utilise the green bonds to advance its commitment to sustainability, and to further its "operational efficiency". In addition to Singapore, in Asia Pacific (Apac), Equinix operates services and data centres in Adelaide, Brisbane, Canberra, Melbourne, Perth, Sydney, Shanghai, Hong Kong, Chennai, Mumbai, Jakarta, Osaka, Tokyo, Seoul, Johor and Kuala Lumpur.
The money from the green bonds will be used to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects, such as green buildings, renewable energy and energy efficiency, including heat export projects. The move comes as the Singapore government steps up its climate resilience efforts.
In Singapore Equinix has a data centre, known as SG5, which has a low average annual power usage effectiveness (PUE) of 1.32, for the Apac region. SG5 uses Singapore’s National Water Agency NEWater ultraclean high-grade reclaimed water for sustainable cooling and the facility has been given a BCA-IMDA Green Mark Platinum certification.
DBS Bank and Standard Chartered Bank served as joint global coordinators and joint lead managers and bookrunners, and HSBC and OCBC served as joint lead managers and bookrunners. DBS Bank served as sole green bond structuring agent. Law firm Linklaters advised the joint book running lead managers on the loan.
Energy efficiency
“As artificial intelligence (AI) adoption accelerates, advancing energy efficiency and integrating the latest sustainability innovations at our data centres becomes increasingly critical. The issuance of our inaugural green bonds in Singapore underscores our commitment to designing and building energy-efficient infrastructure, and reducing our carbon footprint,” said Yee May Leong, managing director, Singapore, Equinix, said in a statement.
Leong added: “Equinix has always been a strong proponent of Singapore’s National AI Strategy and Green Plan 2030, and this milestone reinforces our dedication to advancing the nation’s AI vision responsibly and sustainably through our vibrant AI marketplace.”
Including this latest issuance, Equinix has issued a total of approximately $7.3 billion of green bonds globally. Equinix said that its "allocation strategy" includes covering project expenditures up to two years before the issuance of the green bonds and three years following the green bond issuance.
Also in the media release, Clifford Lee, global head of investment banking, DBS Bank, said: "As the first green bond by a foreign non-financial corporate issuer in Singapore, this issuance also underscores the vital role capital markets play in advancing a greener digital economy, as well as Singapore’s growing capabilities as a regional sustainable financing hub.”
In addition, Maria-Lisa Farmakidis, executive director of North America debt capital markets (DCM) at Standard Chartered, added: “This successful debut offering not only establishes Equinix’s presence in the Singapore dollar bond market, but also paves the way for future issuances.”
This article first appered in sister title CorporateTreasurer.