STT GDC Launches First Singapore Dollar Denominated Sustainability-Linked Perpetual Securities Offering
ST Telemedia Global Data Centres (STT GDC) has successfully priced its debut Sustainability-Linked Perpetual Securities Offering (SLP) at 5.7% following a robust book building process. The net proceeds from the SLP will be utilized for various general corporate purposes, such as refinancing existing borrowings, financing investments and acquisitions, supporting working capital needs, and funding capital expenditures for the company and its subsidiaries.
This landmark SLP by STT GDC marks several industry firsts, including being the first Singapore dollar denominated SLP, the first public benchmark SLP in Asia, and the first public perpetual offering by a pure-play data center globally.
Commitment to Sustainability
In line with its commitment to sustainability, STT GDC unveiled a Sustainability-Linked Financing Framework in 2022. This framework outlines the company’s goal to achieve net carbon-neutrality by 2030 through concrete action plans, including the issuance of sustainability-linked financial solutions such as bonds and loans. The framework sets stringent Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) to drive progress towards mid-to long-term sustainability objectives. The SLP is designed to support STT GDC’s sustainability strategy, with a specific target of increasing the proportion of renewable energy in total electricity consumption to 60% by 2026.
Global Growth Plans
The proceeds from the SLP will enable STT GDC to advance its global expansion efforts, enhancing its geographical footprint and meeting the growing demand for purpose-built digital infrastructure. The increasing volume of data, coupled with the rise of technologies like AI and machine learning, is fueling the demand for data centers. IDC forecasts a substantial growth in digital data generation, with enterprise data expected to grow at a 28% compound annual growth rate (CAGR), reaching 291 zettabytes (ZB) by 2027. Southeast Asia is experiencing a surge in data center investments to address this demand, as evidenced by STT GDC’s recent investments in Indonesia, Thailand, the Philippines, and Malaysia.
Nelson Lim, Group Chief Financial Officer of ST Telemedia Global Data Centres, expressed confidence in the success of the inaugural SLP issuance, emphasizing the company’s unwavering commitment to growth and sustainability. The strong response from investors, including top-tier institutional players, underscores the appeal of STT GDC’s Sustainability-Linked Financing Framework, with the book-building process attracting significant interest and resulting in an order book exceeding S$1 billion.
