Global Switch issues €700m 10-year inaugural green bond

Global Switch issues €700m 10-year inaugural green bond

Global Switch Singapore Woodlands.jpg

Global Switch has announced its inaugural €700 million green bond issuance; further reducing the cost of funding and the overall cost of capital.

The company said it will and enhance the return on investment for new developments and redevelopments.

The new bond matures on 7 October 2030 and pays a coupon of 1.375%. This extends Global Switch’s average bond debt maturity to 6.2 years from 4.2 years and reduces its average cost of bond debt to 2.2% from 2.6%, the company revealed in a written release.

The transaction was supported by long-term institutional investor interest, while the coupon is the lowest ever issued by the company across any maturity.

The issue was compliant with the ECB’s corporate sector purchase programme (CSPP) and achieved green bond certification.

“The launch of our inaugural green bond is a further building block in our long-term sustainability strategy,” said John Corcoran, Chief Executive Officer of Global Switch.

“We intend to use the proceeds to accelerate our organic expansion strategy, to improve our carbon footprint and to support the needs of our customers through the design, development and innovation of new green data centres which deliver the highest standards of energy efficiency.”

Global Switch is currently one of the highest credit-rated data centre companies in the world.

The company also revealed that the last stage of Global Switch’s 70,000 sqm Hong Kong data centre is scheduled for completion in Q4 2020, and stage 1 of its Amsterdam East data centre is also nearing completion.

The green bond issue forms part of Global Switch’s strategy to be climate neutral across its portfolio by 2030.

“Global Switch is committed to maintaining a strong investment-grade credit profile,” said David Doyle, Chief Financial Officer of Global Switch.

“We are delighted to have set a new record-low coupon for the Company with todays above benchmark long-dated ten-year bond issuance which recognises the quality of our business and the strength of our balance sheet.

“The transaction reduces our overall cost of capital, extends our average debt maturity and will further enhance our return on investment for the development of new green data centres.”

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