DataCenterNews Asia Pacific - Specialist news for cloud & data center decision-makers
Story image
BDx secures $155m debut loan in Singapore for data center expansion
Fri, 8th Mar 2024

BDx Data Centers, described as the fastest-growing carrier-neutral data center platform in Asia-Pacific, has successfully secured a US$155 million loan from DBS Bank and OCBC, marking its debut on the Singapore loan market. The funding agreement, signed on 15 February, designates DBS and OCBC as the mandated lead arrangers for this facility.

The loan, which closed on 20 February, is on a five-year term with no amortization. It permits BDx to optimise its capital structure and utilise strong cash flows to reduce its cost of capital. The majority of the loan will be directed towards acquiring the freehold of OneTen Paya Lebar, which houses BDx's flagship SIN1 data center. Singapore, with its strong presence in the global data center market, is well-placed to benefit from the growing demand for data centers, driven by the rise of cloud computing and generative AI. The remainder of the loan will be allocated for general corporate purposes and other regional plans.

The decision to provide the loan was influenced by BDx's strong financial standing, impressive client portfolio, and the support from BDx shareholder I Squared Capital. These factors allowed the financing to be completed on highly favourable terms. The data center platform, dedicated to digital infrastructure, has committed capital of over $2 billion.

Mayank Srivastava, CEO of BDx, commented on the loan, stating, "We have secured a strategic bank loan from DBS and OCBC that will empower us to secure our long-term operations in Singapore and enhance our service offerings. This financial milestone is a testament to our robust fiscal management and the trust placed in us by financial institutions. We are committed to leveraging this opportunity to drive innovation, support our customers' growing needs, and contribute to the digital economy's infrastructure."

Amit Sinha, Managing Director and Group Head of Telecommunications, Media & Technology, Institutional Banking at DBS Bank, also expressed his excitement about the partnership. "Our decision to partner with BDx is rooted in our confidence in their innovative approach and solid market position. We are excited to see how this strategic funding will propel BDx to new heights in the data center industry, both in Singapore and across APAC."

OCBC expressed similar sentiments, with Ms Elaine Lam, Head of Global Corporate Banking at OCBC, stating, "One of our key strategic priorities is to capture opportunities from the growth of new economy sectors such as cloud software and data center companies. Our participation in BDx's debut Singapore loan facility underscores our belief in BDx's potential to grow the data center sector and support Singapore's digital economy. This partnership will not only bolster BDx's capabilities but also contribute to the broader digital infrastructure development, which is vital in today's increasingly interconnected world."