Equinix, Inc., the world’s leading digital infrastructure company, has announced the issuance of over $750 million in green bonds through two recently completed offerings. This action reinforces the company’s commitment to sustainability and its goal of enhancing the ecological efficiency of its operations.
Another step towards sustainability
With these latest issuances, Equinix has reached a total of approximately $5.6 billion in green bonds, positioning itself among the top 10 largest corporate issuers in the US green investment-grade bond market.
Katrina Rymill, Senior Vice President of Corporate Finance and Sustainability at Equinix, explains, “Green bonds serve as a valuable means to secure financing and support significant initiatives that enhance the sustainability of our operations.” Rymill highlights that in the last five years, the company’s green bonds have funded 172 eco-friendly construction projects at 105 sites, 33 energy efficiency projects, and two Power Purchase Agreement (PPA) projects.
Issuance Details
The company issued €600 million in green senior notes with an interest rate of 3.65%, maturing in 2033. Additionally, it issued CHF 100 million in green senior notes with an interest rate of 1.5575%, maturing in 2029. Equinix used rate locks to hedge a significant portion of the interest rate risk associated with the issuance of both green bonds.
Eligible Projects and Allocation Strategy
Equinix intends to allocate an amount equivalent to the net proceeds from the green bonds to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects. The company’s allocation strategy includes covering project expenses up to two years prior to the issuance of the green bonds and three years post-issuance.
Commitment to Sustainability
Equinix continues to invest in new and innovative technologies in energy efficiency, renewable energy, and heat export projects as part of its global sustainability strategy, Future First. In 2023, the company maintained a 96% renewable energy coverage across its portfolio and improved the energy efficiency of its facilities by over 8% compared to the previous year.
Additionally, Equinix was recognized for its climate performance and transparency in 2023 by achieving the highest rating on CDP’s prestigious Climate Change A List for the second consecutive year.