EdgeConneX’s Jakarta data centers portfolio expansion

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This project finance comprises a $403.8 million deal in Sustainability-Linked Senior Facilities (SLF), accelerating the expansion of EdgeConneX for its Jakarta, Indonesia data centers portfolio to over 120MW and greening its footprint. The proceeds are meant to be invested in two data centers expansion and green energy transition. One of the centers is JH1 Hyperscale Data Center (60MW). The project finance was raised via ING, Natixis, SMBC and MUFG. MUFG also acted as the account bank, facility agent, security agent, and hedging bank for the transaction. Except for one of four Mandated Lead Arrangers, ING was joint sustainability coordinator and hedging bank. The loan is set to be extended in two tranches, respectively $313.80m and $90m. The first tranche amount has a tenor of 7.10 years as the maturity end in September 2030. The transaction closed in September 2023. It has been described as the first sustainability-linked loan for data centers in Indonesia. The loans use a KPI framework that complies with SLL principles published by the Loan Market Association. EdgeConneX has more than 500MW in development and operation globally. The company is backed by Swedish private equity company EQT’s Infrastructure IV fund, which agreed in August 2020 to acquire EdgeConneX from Providence Equity Partners. https://www.ingwb.com/binaries/content/assets/ingwb.com/network/singapore/press-release_ing-closes-indonesias-first-data-centre-sustainability-linked-loan.pdf https://www.edgeconnex.com/company/news-and-pr/edgeconnex-secures-403-8-million-in-sustainability-linked-financing-to-support-expansion-in-asia/ https://www.edgeconnex.com/wp-content/uploads/2022/02/ECX-22-36-JAKARTA-2023-DATA-SHEET-V3.pdf https://www.pfie.com/story/4276916/global-awards-ggs2rkblbl