DataBank announces its first green financing, issuing $456 million of secured notes
DataBank, a company specializing in enterprise-level edge colocation, interconnection, and managed cloud services, has announced the issuance of $456 million in secured notes. This marks the company’s fourth securitization since 2021 and their first venture into green financing, totaling their securitized portfolio to $2.16 billion in investment-grade bonds.
The funds raised from the issuance, 100% of which will be utilized for refinancing a previous bridge loan and the development of additional data center capacity across their platform, reflects a step in DataBank’s growth strategy, the company notes. DataBank reveals that the loan will be used to refinance a bridge loan that facilitated the acquisition of four data centers in the Houston market from CyrusOne in 2022.
The securitization saw participation from both repeat and new investors.
To qualify as a green bond, the projects being refinanced had to meet specific sustainability criteria related to water conservation, carbon emissions reduction, and a low Power Usage Effectiveness (PUE). According to the company, these efforts align with DataBank’s broader goal of achieving carbon neutrality by 2030.
Kevin Ooley, DataBank’s president and CFO, emphasized the significance of the financing in demonstrating the company’s commitment to sustainability, efficiency, and growth. He states: “It signals the strong endorsement of investors in our strategy, footprint, and ability to execute profitably across that entire portfolio.”
This announcement follows three prior securitizations by DataBank in March 2021, October 2021, and March 2023. Additionally, the company completed a $2.2 billion recapitalization in 2022 led by SwissLife Asset Management.
DataBank, which currently operates over 65 US data centers and 20 major interconnect locations in more than 27 metro markets, received an initial A- rating from Kroll Bond Rating Agency for the $456 million secured notes. Deutsche Bank Securities served as the Sole Structuring and Joint Active Bookrunning Manager, with Guggenheim Securities and TD Securities also acting as Joint Active Bookrunning Managers in the transaction.
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