AirTrunk secures A$16bn sustainability-linked financing
Author: Joe Peck
Hyperscale data centre operator AirTrunk has completed a A$16 billion (£7.6 billion) refinancing package (excluding Japan), which it says is the largest sustainability-linked financing in the Asia-Pacific and Japan region to date. The multi-transaction deal covers both new and operational assets in Australia, Hong Kong, Malaysia, and Singapore.
AirTrunk first introduced a sustainability-linked loan (SLL) in 2021 worth A$2.1 billion (£1 billion), which increased to A$4.6 billion (£2.2 billion) in 2023. The new refinancing brings the company’s total debt financing platform to more than A$18 billion (£8.6 billion), including its facilities in Japan. Over 60 banks and financiers participated in the latest package.
Structure and sustainability targets
The refinancing comprises four separate sustainability-linked transactions structured as either green loans or SLLs. AirTrunk has set targets across energy and water efficiency, renewable energy uptake, and gender pay equity. The company has stated its goal is to reach net-zero emissions by 2030.
All margin incentives from the financing will be directed into AirTrunk’s social impact fund, which will grow over the course of the loans. The fund supports initiatives including disaster relief, STEM education, equal digital access, biodiversity projects, and sustainable innovation. AirTrunk says it is the first known corporate to embed disaster relief into its financing structure.
In Singapore, a S$2.25 billion (£1.29 billion) green loan will fund the development of AirTrunk SGP2 in Loyang and is described as Singapore’s largest green loan for a data centre. In Melbourne, the company has arranged what it calls the largest green loan in the region and the first globally to include margin adjustments linked to a social impact programme.
Robin Khuda, Founder and Chief Executive Officer of AirTrunk, comments, “Following AirTrunk’s A$24 billion-plus (£11.5 billion) acquisition by Blackstone and CPPIB in 2024, we have expanded our debt financing platform to enable rapid growth across the region.
“By linking all A$18 billion (£8.6 billion) of our financing to sustainability, we demonstrate our long-term commitment to scale responsibly, building essential digital infrastructure to power the digital economy, while delivering lasting positive environmental and social impact.”
Luke Stephens, Vice President and Treasurer at AirTrunk, adds, “This A$16 billion-plus (£7.6 billion) refinancing is a major milestone in AirTrunk’s sustainable finance journey, driving both innovation and transparency.
“From leading the industry with the first SLL in 2021 to today’s multi-transaction structure, we’ve consistently pushed boundaries to drive responsible growth and create meaningful social value.”
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