U.S. law firm Milbank represented the mandated lead arrangers, joint sustainability coordinator and hedging bank in the $403.8 million financing of an up to 120MW hyperscale data center campus in Indonesia for PT Graha Teknologi Nusantara.
The transaction is the first sustainability-linked financing in Indonesia’s data centre market. It provides for margin adjustments when certain key performance indicators concerning the power usage effectiveness (PUE) of the data centres, the use of renewable electricity, and achieving safety goals are achieved. PT Graha Teknologi Nusantara is a subsidiary of the sponsor, EQT-backed EdgeConneX.
Partner James Orme led the Singapore-based Milbank team. “This first-of-its-kind deal marks a new era of financing for these important projects and is an area in which we are seeing increasing amounts of activity,” Orme said in a statement.
Tight supply conditions and construction limits for new facilities in Singapore - the largest data centre market in the Asia Pacific - have spurred investments in neighbouring countries such as Indonesia. The country has been a beneficiary from spillover data centre demand as the region is set to become the largest market for data centres in the next decade, ING, one of the four finance parties, said in a statement, citing a Cushman & Wakefield report from last year.