Climate Insider Brief:
- Equinix has issued €1.15 billion in green bonds, bringing its total green bond issuance to $6.9 billion, positioning it among the top 5 U.S. investment-grade green bond issuers.
- Proceeds from the bonds will finance projects aligned with its Green Finance Framework, including renewable energy, energy efficiency, green building initiatives, and decarbonization technologies.
- Equinix continues to lead in environmental responsibility, achieving 96% renewable energy usage globally, improving energy efficiency, and earning recognition on the CDP Climate Change A List for two consecutive years.
Equinix’s green bond total reaches $6.9 billion, reinforcing its position among the top 5 U.S. investment-grade green bond issuers.
Equinix, Inc., a global leader in digital infrastructure, has bolstered its sustainability efforts by issuing €1.15 billion in green bonds. This new issuance, which follows over $750 million in September 2024, raises the company’s cumulative green bond issuance to $6.9 billion, cementing its place among the top 5 U.S. issuers in the investment-grade green bond market.
Driving Global Sustainability with Green Bonds
The proceeds will support projects aligned with Equinix’s 2024 Green Finance Framework, which focuses on renewable energy, energy efficiency, green building development, and decarbonization technologies. Katrina Rymill, SVP of Corporate Finance & Sustainability at Equinix, emphasized the strategic role of green finance in the company’s mission.
“Our green bonds demonstrate Equinix’s continued commitment to design, build, and deliver the most reliable, secure, and sustainable data center and digital infrastructure possible to benefit our customers, investors, and communities,” Rymill said.
Issuance Breakdown and Strategic Allocation
The new green bonds consist of:
- €650 million principal amount of 3.25% senior green notes due 2031.
- €500 million principal amount of 3.625% senior green notes due 2034.
With interest rate management through rate locks, effective coupons are expected at 3.27% for the six-year notes and 3.65% for the ten-year notes. The offering closed on November 22, 2024.
Equinix will allocate proceeds to finance or refinance eligible green projects, including initiatives in renewable energy, advanced energy efficiency, resource conservation, and decarbonization technologies. These projects target environmental protection and emissions reductions while adhering to global Green Bond Principles and Green Loan Principles.
Sustainability Milestones
Equinix has demonstrated consistent leadership in sustainability. Key achievements in 2023 include:
- 96% renewable energy coverage across its global portfolio.
- 8% improvement in power usage effectiveness (PUE), enhancing operational efficiency.
- Recognition on the CDP Climate Change A List for the second year in a row, placing it in the top 2% of over 23,000 companies.
Future-Ready Infrastructure
Through its Future First sustainability strategy, Equinix is advancing innovative technologies to drive renewable energy adoption, heat export projects, and energy efficiency. These initiatives align with its broader commitment to reducing greenhouse gas emissions and promoting sustainable growth for stakeholders.
Climate Insider Notes
- Investment-Grade Leadership: With $6.9 billion in green bonds issued, Equinix is a sustainability leader in the investment-grade green bond market.
- Strategic Use of Funds: Financing spans critical green initiatives, from renewable energy to decarbonization technologies, ensuring long-term environmental and operational benefits.
- Recognition and Progress: High CDP rankings and renewable energy coverage highlight Equinix’s global sustainability impact.
- Future Sustainability Goals: The company’s ongoing focus on energy innovation and efficiency strengthens its position in the sustainable digital infrastructure market.
This latest green bond issuance underscores Equinix’s role as a pioneer in sustainable finance and infrastructure, ensuring its digital and environmental priorities remain closely aligned.
Source: ESG News
Featured Image: Credit: Todd N. Kamp (toddthephotographer.com)
