AirTrunk secures AUD $16 billion in largest APJ green financing
AirTrunk has completed a AUD $16 billion refinancing, representing the largest sustainability-linked financing in the Asia Pacific & Japan (APJ) region, excluding Japan.
The financing comprises four separate transactions, all of which are sustainability-linked and structured as either green loans or sustainability-linked loans (SLLs). These arrangements apply to both development and operational assets across Australia, Hong Kong, Malaysia, and Singapore.
Since introducing a sustainability-linked loan in 2021, valued initially at AUD $2.1 billion and later refinanced to AUD $4.6 billion in 2023, AirTrunk's overall financing platform now exceeds AUD $18 billion, including its operations in Japan. This milestone reinforces AirTrunk's position within the data centre sector as a significant issuer of sustainable finance.
A consortium of more than 60 banks and financiers supported the transaction, indicating ongoing confidence in AirTrunk's approach to responsible regional growth. The refinancing includes ambitious key performance indicators, such as energy and water efficiency, renewable energy adoption, gender pay equity, and a commitment to net zero emissions by 2030.
Regional focus
Within Singapore, a SGD $2.25 billion green loan will assist with the development of the AirTrunk SGP2 data centre in Loyang. This is Singapore's largest green loan for a data centre and the country's largest loan in the sector. In Melbourne, AirTrunk closed the largest green loan in the APJ region, notable for being the first globally to incorporate margin adjustments linked to a social impact programme - an approach until now only used with SLLs.
AirTrunk distinguishes itself as the first publicly known corporation to incorporate disaster relief funding into its financing structure through its social impact fund. Margin savings from its sustainability-linked financing will go towards emergency response efforts in local communities. This disaster relief initiative forms one part of a broader social impact programme, which also supports science, technology, engineering, and mathematics (STEM) education, equal access to digital services, biodiversity, conservation, and sustainable innovation.
Executive comments
Robin Khuda, Founder and Chief Executive Officer of AirTrunk, reflects on both the recent acquisition and the company's strategic direction through sustainable finance:
"Following AirTrunk's AUD $24+ billion acquisition by Blackstone and CPPIB in 2024, we have expanded our debt financing platform to enable our rapid growth across the region. By linking all AUD $18 billion of our financing to sustainability, we demonstrate our long-term commitment to scale responsibly, building essential digital infrastructure to power the digital economy, while delivering lasting positive environmental and social impact."
Luke Stephens, Vice President and Treasurer at AirTrunk, highlighted the significance of the refinancing in the context of the company's ongoing sustainable finance initiatives:
"This AUD $16+ billion equivalent refinancing is a major milestone in AirTrunk's sustainable finance journey, driving both innovation and transparency. From leading the industry with the first SLL in 2021 to today's landmark multi-transaction structure, we've consistently pushed boundaries to drive responsible growth and create meaningful social value. It's an honour to collaborate with such a diverse group of financiers and partners to deliver a market-leading solution that aligns capital with purpose and sets a benchmark for others to follow."
Ongoing impact
All margin incentives arising from the sustainability-linked financing will continue to be allocated to AirTrunk's social impact fund. The company states this fund will expand in both size and scope as a result of the new loans.
The inclusion of disaster relief within this fund stands out as an emerging trend in corporate financing, potentially signalling a broader shift in how technology and infrastructure companies support affected communities alongside standard sustainability initiatives.
AirTrunk's latest financial manoeuvre consolidates its focus on linking large-scale capital raising to broader environmental and social objectives across the APJ data centre sector.
