Equinix prices $1.85bn in bonds
The company priced $1.85 billion in bonds, including $1.35 billion in its inaugural green bond offering.
Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) today announced that it priced $1.85 billion in bonds, including $1.35 billion in its inaugural green bond offering. The green bonds will be used to help advance the company’s longstanding commitment to sustainability leadership and reducing its environmental impact.
The offering is expected to close on October 7, 2020, subject to the satisfaction of customary closing conditions.
Equinix intends to use most of the net proceeds from the offering to fund the redemption of all of its outstanding €1,000,000,000 2.875% Senior Notes due 2025 and €500,000,000 of its outstanding €1,000,000,000 2.875% Senior Notes due 2026, including, in each case, the payment of premiums, if applicable, and accrued and unpaid interest to, but not including, the redemption date.
Equinix plans to use any remaining net proceeds from the offering for general corporate purposes.
In conjuction with the green bond offering, Equinix has developed a Green Finance Framework, based on the Green Bond Principles and Green Loan Principles, a set of guidelines that promote transparency and integrity in, and advance the standardization of, green debt disclosures. As outlined in the Framework, an amount equal to the net proceeds of the green bonds will be allocated to finance or refinance, in whole or in part, ongoing and new projects in categories such as green buildings, renewable energy, energy efficiency, sustainable water and wastewater management, waste management and clean transportation that are expected to deliver benefits to Equinix and its shareholders.
The Framework is expected to further increase Equinix’s focus on protecting the environment and addressing global climate change through greenhouse gas emissions reduction and drive corporate transparency and accountability. These investments are intended to benefit the communities in which Equinix operates, its employees and stakeholders, contributing to Equinix’s mission to design, build and operate sustainable digital infrastructure.
Until an amount equal to the net proceeds from the green bonds has been fully allocated, Equinix will report annually through an allocation and impact report on the use of such funds and their environmental impacts.