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AirTrunk announces doubling of sustainability-linked loan

Aug 24, 2023 | Posted by MadalineDunn

AirTrunk has doubled its $1.35 billion sustainability-linked loan (SLL) to $2.96 billion, it has announced. This is, according to the company, the largest SLL for a data center operator in the world. 

The company has shared that this transaction will be used to refinance its existing debt facilities and support further growth across the Asia Pacific and Japan region.

Repayment terms are tied to CUE, WUE, PUE, gender diversity and gender pay equity. According to the company, this SLL is the first to utilize the former, while AirTrunk is also the first company to incorporate a gender pay equity target. In March, it also linked all its debt platforms to sustainability commitments. 

In the last two years, the company has announced the development of more than half a gigawatt of new capacity in APJ. AirTrunk chief financial and commercial officer Prashant Murthy said that the landmark SLL ensures that as the company scales, it does so in a sustainable way "driving the industry forward by redefining sustainable financing standards.”

Murthy added: “With an innovative combination of KPIs linked to the key environmental focus areas in the industry across carbon emissions, energy and water efficiency as well as gender diversity and equity, we are demonstrating our commitment to responsible and sustainable growth.”

Joint Sustainable Structuring Agents for the SLL refinance included Crédit Agricole CIB, Deutsche Bank, HSBC, DBS, ING, and Morgan Stanley. MUFG were lead arrangers, underwriters, and bookrunners for the loan.