Sunday, 25 February 2024

SMBC closes $313.8M loan to support EdgeConneX’s data centre development

5 min read

Sumitomo Mitsui Banking Corporation (SMBC) has successfully closed a $313.8 million sustainability-linked loan (SLL) facility to finance EdgeConneX’s expansion plans for its Jakarta Indonesia data centre, being one of four mandated lead arrangers and original hedge counterparties on the transaction.

The landmark SLL financing represents the first-ever in Indonesia’s data centre market, being the inaugural SLL transaction for EdgeConneX in the region and paving the way for increased sustainability capabilities, including power efficiency, renewable energy sources, and enhanced
safety measures. These sustainability targets selected for the transaction are consistent with EdgeConneX’s mid- and long-term sustainability strategy and commitments and are aligned to the Asia Pacific Loan Market Association (APLMA) SLL principles.

The transaction marks SMBC’s third data centre project financing in Indonesia, as well as the second successful closing with EdgeConneX in Asia. In line with SMBC Group’s commitment to achieving a sustainable finance portfolio of JPY 50 trillion ($332 billion) by 2030, we will continue to help our clients transition to a more sustainable way of doing business and leverage sustainable finance to create positive impact for our environment and communities.

Southeast Asia’s data centre market is expected to accelerate, underpinned by increased data consumption, greater cloud spending by businesses, rising digital adoption by governments, a surge in hyperscaler demand and the evolution of new technologies like artificial intelligence (AI).

Vishesh Gupta, head of digital infrastructure team for Asia Pacific, said: “SMBC is delighted to have partnered with EdgeConneX on this bespoke financing and important strategic initiative. This reflects our deep commitment and unique capabilities in the fast-growing digital infrastructure sector in Asia.

In Indonesia, we are one of the few international banks with a full service domestic banking licence via PT Bank BTPN, which is amongst the top domestic banks. We look forward to working together with our clients and supporting them with tailor-made solutions on their journey of growth in the region.”

Re-disseminated by The Asian Banker

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