AirTrunk Receives $10.4 Billion Loan to Expand Asia Pacific Data Center
AirTrunk has recently secured a refinancing of AUD 16.4 billion (approximately USD 10.4 billion) to support its expansion of data center scale in the Asia Pacific region, excluding Japan. This financing consists of four independent transactions covering a portfolio of green loans and sustainable development related loans across multiple countries and currency categories.
One of the transactions will be used to support AirTrunk’s SGP2 facility construction in Loyang, Singapore. The loan amounts to SGD 2.25 billion (approximately USD 1.75 billion), making it the largest green loan in the data center sector in Singapore. Another transaction aims to provide refinancing for its M1 facility located in Melbourne. It is worth noting that this is the world’s first data center green loan to introduce a spread adjustment mechanism linked to social impact programs, which was previously common in Sustainable Development Linked Loans (SLLs).
The remaining transactions will be used to support the financing of the company’s important green new construction projects and existing operational assets in multiple markets such as Australia, Hong Kong, Malaysia, and Singapore.
A consortium of over 60 banks provided support for the AUD 16.4 billion financing, bringing AirTrunk’s total financing scale, including its Japanese operations, to over AUD 18 billion (approximately USD 11.68 billion).
Robin Khuda, founder and CEO of AirTrunk, stated that the company’s expansion of its debt financing platform is aimed at driving rapid growth in the Asia Pacific region. He added in the statement, “By linking the entire AUD 18 billion financing to the Sustainable Development Goals, we demonstrate a long-term commitment to responsible expansion, while continuously generating positive environmental and social impacts while building critical digital infrastructure that drives the digital economy.”
To ensure accountability and accelerate sustainable development performance, AirTrunk has set key performance indicators (KPIs) for areas such as energy and water efficiency, adoption of renewable energy, and gender pay equity. The company plans to achieve net zero emissions before 2030.
Luke Stephens, Vice President and Chief Financial Officer of AirTrunk, stated, “We are always pushing boundaries, committed to achieving responsible growth and creating meaningful social value. This refinancing, equivalent to over AUD 16 billion, is an important milestone in AirTrunk’s sustainable finance journey, driving innovation and increasing transparency. ”
According to AirTrunk, all interest rate spread incentives from sustainable development related loans will be invested in its social impact fund. The fund will continuously expand its scale and enhance its influence during the loan term.