Global Switch raises $1.2 billion for data centre builds
Thu 1 Jun 2017
Global Switch, owner and operator of twelve data center facilities worldwide, has announced the completion of two €500 million bond offerings.
The investment-grade bonds were offered so that the company can restructure debt and strengthen its capital for future growth.
The bonds, which were more than 3.4 times oversubscribed, will mature in 2024 and 2027, extending the debt maturity for the company. The bonds were rated BBB+, placing them in the medium level of investment-grade bonds.
Global Switch intends to use its improved capital and debt structure to continue global expansion, building eight new data center facilities. Two of the facilities will be located in markets that are new to Global Switch, Hong Kong and Shanghai. The remaining six will be expansions in current markets, and all are supported by pre-commitments from customers.
Three of the new data centers are already under construction, in Hong Kong, Sydney and Singapore. Hong Kong Phase 1 and Sydney East Phase 2 are expected to be completed and operational by the third quarter of this year.
Global Switch CEO John Corcoran said that the successful bond issuance will help to solidify the future growth plans for the company, especially in the European and Asia-Pacific markets.
“In particular, these new bond issuances help us to fund our exciting expansion plans to meet growing global demand for hyperscale data centre infrastructure, while maintaining our focus on strong long-term operational and financial performance and our market leading investment grade credit profile.”
Global Switch claims to be the ‘world’s highest credit rated data center provider’, with investment-grade ratings from the three top agencies worldwide.
The latest bond issuance follows December’s announcement that a consortium of private and institutional investors from China acquired a 49% stake in the company for £2.4 billion. The deal led to pre-commitments from China Telecom Global to purchase space in new data centers in Hong Kong and Singapore. With the new partner, Global Switch also announced a joint venture with Chinese data center company Daily-Tech to establish a new facility in Shanghai.
In April 2017, Global Switch also announced a strategic partnership with Huawei to build modular data centers focused on smart operations and management. The two companies intend to leverage Huawei’s advances in iPower, iCooling and iManager to promote innovation in Global Switch data center design.