Vantage Data Centers completes £600 million transaction

Company concludes its 10th securitization since 2018 and ninth green financing to drive continued, sustainable developments across the region.

Vantage Data Centers has raised £600 million in securitized term notes, marking the first-ever securitization of data center assets in EMEA. The transaction includes an additional £100 million in unfunded Variable Funding Notes. The term notes are rated A-, A (low) and A by Standard & Poor’s, Morningstar DBRS and Scope Ratings, respectively.

Led by Barclays, who acted as sole structuring advisor and sole green structuring advisor, and Sumitomo Mitsui Banking Corporation (SMBC) Nikko Capital Markets, the notes will be used to refinance £480 million of debt for two facilities (CWL11 and CWL13) on Vantage’s 148MW Cardiff, Wales campus, one of the largest hyperscale data center campuses in Europe. Excess proceeds will be used for capital expenses and general corporate purposes. The notes have an anticipated five-year repayment date.

Marking Vantage’s ninth green debt issuance, the transaction achieved a Green Bond designation via a Second-Party Opinion (SPO) from Morningstar Sustainalytics in March 2024. The use of proceeds will lead to progress on UN Sustainable Development Goals (SDG) and will support the research and development of next generation sustainable features to minimize Vantage’s carbon footprint. For additional details, please see the company’s Green Bond Framework.

“Vantage’s pursuit of innovative funding vehicles to drive the company’s continued global development is core to our ability to rapidly meet demand for the critical infrastructure necessary to support cloud adoption and AI,” said Sharif Metwalli, chief financial officer for Vantage Data Centers. “We’re proud to continue our pioneering use of securitization financing in the data center sector, specifically in Europe, and look forward to our ongoing development of flexible, sustainable digital infrastructure around the globe to enable the growth of our customers.”

“We are proud to support Vantage with the inaugural data center securitization financing in our U.K. home market using our market leading expertise in digital infrastructure securitization to help unlock a new source of capital for the asset class in Europe,” said Gordon Beck, head of European corporate & sustainable securitization at Barclays.

To date this year, Vantage has raised $1.7 billion in debt financing for its EMEA platform.

2023 was the second-largest investment year in the past decade for investment in data centres...
ST Telemedia Global Data Centres says that its first data centre facility in Japan – STT Tokyo 1...
Leading legal business, arch.law has acquired data centre specialist law firm Conexus Law. The...
With a second data centre in Lisbon, Equinix is supporting Portugal as a strategic hub for...
Skygard sets itself apart in the data centre market. Drawing on the competencies of international...
Maputo’s first Tier III certified carrier-neutral data centre, with built-in sustainability, adds...
Host-IT, an nLighten company, is pleased to announce that its popular server colocation services...
Boasting direct access to the AMS-IX internet exchange and world-class fiber connections, Amsterdam...