ESG Post

Technology

Equinix issues €1.15Bn in green bonds to drive sustainability initiatives

Equinix, Inc., the global digital infrastructure company, has announced the issuance of €1.15 billion ($1.2 billion) in green bonds, building on its earlier green bond offerings of over $750 million in September 2024. With these latest issuances, Equinix has raised a cumulative $6.9 billion through green bonds, cementing its position among the top five green bond issuers in the United States.

The new issuance includes €650 million ($682 million) principal amount of 3.25% senior green notes due 2031 and €500 million ($525 million) principal amount of 3.625% senior green notes due 2034. The offering closed on November 22, 2024, and the effective coupon rates for the 6-year and 10-year bonds, accounting for hedges, are 3.27% and 3.65%, respectively.

Equinix plans to allocate the net proceeds from these green bonds to finance or refinance Eligible Green Projects, as outlined in its 2024 Green Finance Framework. These projects encompass green building development, renewable energy, energy efficiency innovations, resource conservation, and advanced decarbonization solutions. Eligible expenditures include projects completed up to two years prior to issuance and within three years following the green bond issuance.

“We view green finance as an integral part of our sustainability strategy at Equinix,” said Katrina Rymill, SVP of Corporate Finance & Sustainability at Equinix. “Our green bonds demonstrate Equinix’s continued commitment to design, build and deliver the most reliable, secure, and sustainable data centre and digital infrastructure possible in order to benefit our customers, our investors, and the communities in which we operate.”

Equinix’s green bond framework aligns with the Green Bond Principles (June 2021) and Green Loan Principles (February 2023), ensuring transparency, integrity, and standardization in green debt disclosures. This framework is a critical element of the company’s Future First sustainability strategy, focusing on reducing greenhouse gas emissions, improving energy efficiency, and driving corporate accountability.

In 2023, Equinix achieved 96% renewable energy coverage across its global operations and reported an over 8% improvement in energy efficiency, measured through power usage effectiveness (PUE). Additionally, Equinix was recognized on CDP’s Climate Change A List for the second consecutive year, an accolade awarded to less than 2% of over 23,000 companies submitting environmental data to CDP.