Equinix, Inc. a digital infrastructure provider, has announced the issuance of over $750 million in green bonds through two recently completed offerings. This new capital will further Equinix’s sustainability goals and enhance the operational eco-efficiency of its business. With these issuances, Equinix’s total green bond issuance reaches approximately $5.6 billion, positioning it among the top 10 largest US corporate issuers in the investment-grade green bond market.
“Green bonds serve as a valuable means to secure funding and support significant initiatives that enhance the sustainability of our operations. Over the last five years, our green bonds have funded 172 green building projects across 105 sites, 33 energy efficiency projects and two Power Purchase Agreement (PPA) projects. Green bonds underscore Equinix’s dedication to build energy-efficient infrastructure, implement renewable energy sources and reduce our carbon emissions. Through the allocation of our green bonds, we have been able to directly align our financing needs with our sustainability strategy,” said Katrina Rymill, SVP Corporate Finance & Sustainability, Equinix.
The company issued €600 million in 3.65% senior green notes due 2033 and CHF 100 million in 1.5575% senior green notes due 2029. Equinix used rate locks to mitigate interest rate risk for these Euro and Swiss Franc green bonds, resulting in an effective coupon rate of 3.62% and 1.67%, respectively. The Euro offering closed on September 3, 2024, and the Swiss Franc offering closed on September 4, 2024.
Equinix plans to use the net proceeds from these green bonds to finance or refinance recently completed or upcoming Eligible Green Projects. The allocation strategy covers project expenditures incurred up to two years before and up to three years following the green bond issuance. These projects support Equinix’s sustainability mission, encompassing green building development, renewable energy advancements, energy efficiency improvements, resource conservation, and innovative decarbonisation solutions.