EdgeConneX, a global Build-to-Suit and Build-to-Density Solutions leader, announced it secured an additional $1.9 billion in sustainability-linked financing to support its EMEA digital infrastructure expansion. This deal upsized EdgeConneX $2.9 billion in sustainability-linked financing (initially issued in October 2022).
The deal was marked by significant oversubscription from existing and new lenders while solidifying EdgeConneX’s commitment to the company’s sustainability goals. This deal also elevated the company’s total green investments to over $7 billion over the last two years to support its global digital infrastructure growth.
The financing consolidates EdgeConneX’s extensive portfolio across EMEA, transitioning it from standalone project-based funding to a more solid structured corporate debt package. This latest deal provides EdgeConneX with enhanced financial flexibility and a greater capacity to support projected growth throughout the EMEA region. Through a rapidly growing European footprint of over 20 facilities, EdgeConneX continues expanding its regional presence, driven by strong global customer demand for cloud and AI infrastructure.
A significant highlight of this funding arrangement is the inclusion of sustainability-linked margin adjustments. This feature ties the interest rate to EdgeConneX’s achievement of predetermined sustainability objectives, symbolizing a commitment to achieving carbon neutrality, eliminating the waste and water footprint, and powering its entire data center platform with renewable energy sources by 2030.
EdgeConneX also earned two Project Finance International (PFI) awards, acknowledging its pioneering financing achievements. In a notable double victory, EdgeConneX secured the 2023 Digital Deal of the Year Award, and its joint-venture partner, AdaniConneX, received the APAC Digital Infrastructure Deal of the Year Award. The EdgeConneX Corporate Finance team led the AdaniConneX financing with the Adani Group.
KEY QUOTES:
“The reception of this transaction reconfirms our status as an industry-leading data center developer and operator and reinforces our belief that responsible growth and operational excellence go hand in hand. It showcases our ability to replicate this success on a global scale. This is a significant milestone in our journey towards leading the industry in sustainable practices, and we are excited about the future possibilities this opens up for EdgeConneX and our stakeholders.”
– Joe Harar, CFO, EdgeConneX
“With this latest sustainability-linked financing deal, EdgeConneX is rapidly ascending as one of the largest financing issuers in Europe, underscoring our commitment to sustainability and innovation in the data center sector. Our team’s exceptional achievement was accomplished through dedicated efforts in cultivating a broad range of lending relationships, as well as close cooperation with the coordinators, advisors and EQT Infrastructure. This is a testament to the collective team’s expertise and hard work.”
– Eelco Holst, Senior Vice President – Corporate Finance, EdgeConneX
