More than 40 banks commit to AirTrunk’s $4.6b debt deal
More than 40 banks have piled into data centre operator AirTrunk’s $4.6 billion novel debt deal linked to its carbon, energy and water usage, snapping a lacklustre year for Australian borrowers in sustainable financing markets.
Debt capital markets have been idle as companies digest higher borrowing costs from global markets.
Prashant Murthy, AirTrunk’s chief financial officer, says it will put any savings from its new loans towards social impact initiatives in STEM education. Oscar Colman
Until AirTrunk’s deal, local companies raised about $US7 billion ($10.8 billion) in green bonds and sustainability-linked loans, year-to-date, compared with $US15 billion this time last year when interest rates were lower, data from Dealogic shows.
AirTrunk’s $4.6 billion transaction refinances debt due in 2025, which it borrowed when Macquarie’s infrastructure arm and PSP Investments bought an 88 per cent stake in the company in January 2020. The latest debt arrangement also helps AirTrunk cover capital needs for its new data centre in Malaysia.
The financing included four-, five- and seven-year loans, revolving credit lines and delayed-draw loans, with tranches in Australian, Singaporean and Hong Kong dollars, AirTrunk chief financial officer Prashant Murthy said.
Credit Agricole, Deutsche Bank and HSBC led the deal, and DBS, ING, Morgan Stanley and MUFG also worked on the transaction, The Australian Financial Review’s Street Talk column reported in June.
The Australian dollar-denominated debt pays 3.05 per cent over the BBSY benchmark, the five-year debt pays 3.2 per cent, and the seven-year portion was offered at 3.5 per cent.
Mr Murthy would not confirm AirTrunk’s new borrowing costs, or what was reported by Street Talk, but said
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