Climate Insider Brief:
- Equinix has issued over $750 million in green bonds, including €600 million of 3.65% senior green notes and CHF 100 million of 1.5575% senior green notes.
- The funds from these bonds will support a range of sustainability initiatives, including green building projects, energy efficiency improvements, and renewable energy solutions.
- Equinix continues to advance its global Future First sustainability strategy, focusing on innovations in energy efficiency and resource conservation.
Equinix, Inc. (Nasdaq: EQIX), a global leader in digital infrastructure, has announced the issuance of over $750 million in green bonds, marking a significant advancement in its sustainability efforts. This move not only bolsters the company’s commitment to eco-friendly practices but also solidifies its position as a major player in the green bond market.
The latest green bond offerings include €600 million of 3.65% senior green notes maturing in 2033 and CHF 100 million of 1.5575% senior green notes maturing in 2029. The issuance of these bonds has been strategically managed with rate locks to mitigate interest rate risks, resulting in effective coupon rates of 3.62% for the Euro bonds and 1.67% for the Swiss Franc bonds. The Euro bonds offering concluded on September 3, 2024, while the Swiss Franc bonds closed on September 4, 2024.
With these new issuances, Equinix has now issued approximately $5.6 billion in green bonds, placing it among the top ten largest U.S. corporate issuers in the investment-grade green bond sector. This substantial amount reflects Equinix’s ongoing dedication to sustainability and operational efficiency.
Katrina Rymill, Senior Vice President of Corporate Finance & Sustainability at Equinix, emphasized the importance of green bonds in financing initiatives that enhance the company’s environmental performance. “Green bonds serve as a valuable means to secure funding and support significant initiatives that enhance the sustainability of our operations,” Rymill stated. She further noted that, over the past five years, Equinix has utilized green bond proceeds to fund 172 green building projects across 105 sites, 33 energy efficiency projects, and two Power Purchase Agreement (PPA) projects.
The newly raised funds will be allocated to both current and future Eligible Green Projects, adhering to Equinix’s 2024 Green Finance Framework. This framework aligns with the Green Bond Principles of June 2021 and Green Loan Principles of February 2023, which promote transparency and standardization in green debt disclosures. The projects funded will span a variety of sustainability categories, including green building development, renewable energy innovations, advanced energy efficiency, resource conservation, and decarbonization solutions.
Equinix’s commitment to sustainability is further underscored by its strategic focus on increasing resource efficiency and reducing greenhouse gas emissions as part of its global Future First sustainability strategy. The company’s previous green bonds, issued under the 2020 Green Finance Framework, have already been fully allocated, advancing its goal to achieve climate neutrality by 2030.
As Equinix continues to invest in cutting-edge technologies and sustainability projects, the issuance of these green bonds represents a significant step forward in aligning financial practices with its broader environmental goals. This initiative not only enhances Equinix’s operational eco-efficiency but also contributes to global efforts in combating climate change and promoting sustainable development.
SOURCE: Equinix
Featured Image: Credit: Equinix
