Vantage Data Centers, a leading global provider of hyperscale data center campuses, announced it has raised €640 million in securitized term notes, marking the first-ever euro-based securitization of data center assets in Continental Europe.
The deal includes an additional €80 million in unfunded Variable Funding Notes. The Class A-2 Notes are rated A-, and the Class B Notes are rated BBB- by Standard & Poor’s and Scope Ratings. And this deal follows Vantage’s success last year with the first-ever EMEA data center ABS completed in British pound sterling.
Over the last year, Vantage has raised €2.2 billion in new debt financing for its EMEA platform.
What the notes will be used for: The notes will be used to refinance four data centers in Germany, two in Offenbach, Frankfurt, and two in Berlin, all of which are fully leased to hyperscale customers. And this refinancing is part of Vantage’s wider efforts to further expand its presence in the EMEA region and accelerate time to market to meet mounting demand for AI and cloud capacity. Surplus funds will be allocated toward capital expenditures and broader corporate initiatives. The notes have an anticipated five-year repayment date.
KEY QUOTES:
“The issuance of the first euro-denominated ABS in the data center sector marks a significant milestone in digital infrastructure financing. Having previously issued the first data center ABS in both North America and EMEA (sterling-denominated), Vantage continues to showcase our innovative approach to capital markets and our ability to unlock new funding vehicles to fuel our global expansion.”
Rich Cosgray, senior vice president, global capital markets for Vantage Data Centers
Advisors/Counsel: Vantage was represented by Clifford Chance, and the deal was led by Barclays and Deutsche Bank as active joint lead managers. The deal was supported by ING and Natixis as joint lead managers and ABN Amro, Banco De Sabadell, SMBC and Societe Generale as co-managers. Barclays acted as sole structuring advisor and sole green structuring advisor, and the deal achieved a Green Bond designation via a Second-Party Opinion (SPO) from Morningstar Sustainalytics. Thse funds raised will contribute to advancing the United Nations Sustainable Development Goals (SDGs) and will facilitate the innovation of next-generation sustainable solutions aimed at reducing Vantage’s environmental impact.
