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On Monday, listed global data center operator Equinix announced that it has priced $1.2 billion principal amount in senior green notes yielding 3.90 percent and  2032, marking its fourth green bond offering to date. The company said it will use proceeds from the bond offering to help advance its commitment to sustainability leadership and toward  reducing its environmental impact. This latest offering brings Equinix to approximately $4.9 billion of green bonds issued, making it the fourth-largest global issuer in the investment grade green bond market.

“We are proud that Equinix is now the fourth largest issuer of green bonds globally,” Equinix Chief Financial Officer Keith Taylor said in an official comment. “With the capital generated from this financing, we will continue to strengthen our longstanding environmental commitments while aligning our sustainability strategy with our capital needs.”

Equinix used treasury locks to hedge a significant portion of interest rate risk associated with the issuance of the green bonds. These hedges resulted in a cash gain of $58.4 million, which will be reported ratably over the term of the debt, reducing the effective coupon on the bonds to 3.35 percent.

Equinix intends to allocate an amount equal to the net proceeds from the green bonds to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects, including projects in green buildings, renewable energy, energy efficiency, sustainable water and wastewater management, waste management and clean transportation. Previous projects funded through Equinix green bond proceeds have included the company’s Co-Innovation Facility (CIF), which opened earlier this year in the Washington D.C. area, and is a platform for trialing and showcasing advanced power, cooling and control methodologies (e.g. fuel cells and liquid cooling) for use in future data centers.

In February, Equinix opened a new IBX data center, MU4, in Aschheim, Germany, another green-bond funded initiative, which is powered by 100 percent renewable energy purchased through a green power certificate from German energy supplier Mainova.

In 2021, Equinix became the world’s first data center operator to commit to global climate-neutral operations by 2030, backed by science-based targets and an aggressive sustainability innovation agenda. The company has been a long-time participant in the Climate Neutral Data Center Operator Pact, an industry-wide initiative to support carbon neutrality in European data centers.

Last month, Equinix announced its expansion into the key South American markets of Chile and Peru through the acquisition of four data centers from Chilean telecommunications provider Empresa Nacional De Telecomunicaciones S.A. (Entel), for an enterprise value of approximately $705 million.

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