In QuotedData’s morning briefing for 5 June 2023:
- Digital 9 Infrastructure (DGI9) has announced a $100m green loan debt facility, and an update on the syndication of one of its invested companies. The $100m debt facility is being utilised by Verne Global Iceland, one of DGI9’s invested companies. Verne Global is a leading data centre platform in Iceland and the debt facility will be used to help fund Verne Global’s growth capital expenditure pipeline, partly repay outstanding loans, and refinance an existing bridge loan facility. The interest rate payable in the first 3 years of the facility is 3% per annum over the Secured Overnight Financing Rate, stepping up to 3.25% per annum and 3.5% per annum, in fourth and fifth year, respectively. DGI9 has also signed up to a Green Financing Framework, which complies with the Green Bond Principles and Green Loan Principles. This new debt facility will increase DGI9’s leverage from 57.6% to 59.0%. DGI9 has also initiated a process to syndicate a minority stake in the Verne Global group of companies, including its operating sites in Iceland, Finland, and the United Kingdom to strategic capital partners. They expect the terms to be announced in Q3 2023, with DGI9 retaining the majority stake in Verne Global. The cash proceeds from this syndication would be used to partly pay down debt and fund growth capital expenditure in investee companies.