Jun 23, 2022 | Posted by MadalineDunn
EdgeConneX has announced that it has secured $1.7 billion in sustainability-linked debt financing, including the company's first-ever Asset-Backed Securitization (ABS) and multi-currency term loan (ESG Term Loan). The company will reportedly use this to finance its growth and keep up with ever-growing demand.
The funds will be operated by Ares Management Corp.'s infrastructure lending division which has committed to extending around $1B in sustainability-linked debt to be used for refinancing and funding EdgeConnex's development pipeline. As per the sustainability-linked debt agreement, interest rates will be dependent on whether EdgeConneX meets its predetermined sustainability goals, and according to the company, it has big sustainability goals lined up. This includes a pledge to be carbon, water and waste neutral by 2030, and the goal to operate on 100% renewable energy.
In a statement, EdgeConnex Chief Financial Officer Joe Harar said: "This new financing affords the company high flexibility to not only invest in our core infrastructure in a sustainability-minded way but also to support our high growth customers that need green, sustainability-linked solutions hyper-locally and at hyperscale globally."
Randy Brouckman, CEO of EdgeConneX, added: "This is a pivotal time for EdgeConneX, and we are excited by the support of Ares as we seek to execute on our growth plans. This sustainability-linked financing underscores our deep commitment to provide innovative, energy-efficient solutions in new and growing markets that generate sustainable value for our clients and stakeholders around the world."
