NextDC receives AU$30mn from Australia National Bank
Mon 14 Aug 2017
National Australia Bank has invested in Australian data centre provider NextDC with debt financing funds amounting to an estimated AU$300 million (approx. £182 million).
According to the organisation, the three-year capital investment will allow the provider to fund future capital expenditure, including expanding its data centre portfolio.
‘When combined with the recent AU$300 million Notes III raising, the new facilities will result in NextDC having access to a total of AU$600 million of debt funding, which is a further vote of confidence in the company’s credit standing and outlook,’ said NextDC CEO Craig Scroggie.
In September 2016, the company set out to raise AU$150 million to fund a new data centre in Sydney (S2). Earlier this year, it also announced new build projects in Brisbane (B2) and Melbourne (M2), totalling AU$160 million. Once these facilities are complete, NextDC will count eight data centres in its portfolio.
Three of its sites, Sydney (S1), Melbourne (M1) and Perth (P1), are owned by Asia Pacific Data Centre Group (APDC) – which previously belonged to NextDC before it split off in 2013.
Over the last month, NextDC has been forced to enter an ongoing bidding war with investment firm 360 Capital in order to buy a controlling stake in APDC, and prevent the majority shareholder from acquiring the business. NextDC reportedly feared that a change of control would result in commercial risk.
‘S1, M1 and P1 are properties well known to us and represent a low risk acquisition for NextDC, which can be funded from our existing cash reserves,’ said Scroggie.