Equinix, Inc., the world’s digital infrastructure leader, has further demonstrated its commitment to sustainability by issuing an additional €1.15 billion in green bonds. This move brings the company’s total green bond issuance to approximately $6.9 billion, solidifying its position among the top 5 U.S. issuers in the investment-grade green bond market.
This latest issuance sees over $750 million raised in September 2024, continuing to underscore Equinix’s dedication to advancing its mission for global sustainability. Green finance is aimed at effecting impactful initiatives, further reinforcing Equinix’s leadership in the data center and digital infrastructure sector.
Strategic Green Finance at Equinix
According to Katrina Rymill, Senior Vice President of Corporate Finance & Sustainability at Equinix: “Our corporate strategy highlights green bonds as an important aspect of our sustainability strategy.”.
“We see green finance as part of our sustainability strategy at Equinix. The green bonds show Equinix’s further commitment to design, build, and deliver the most reliable, secure, and sustainable data center and digital infrastructure possible for the benefit of customers, our investors, and the communities in which we operate,” Rymill said.
The latest issuance consists 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
- To minimize cost efficiency, Equinix used interest rate locks and expects to achieve effective coupons at 3.27% for 6-year notes and at 3.65% for 10-year notes. The offering will close on November 22, 2024.
Application of Net Proceeds to Sustainable Objectives
Equinix plans to use the net proceeds of the green bond issuance for the financing or refinancing of projects that support its 2024 Green Finance Framework. The framework is consistent with international standards, such as the Green Bond Principles (June 2021) and Green Loan Principles (February 2023), thus ensuring transparency and direct impact.
Key focus areas of the application of proceeds:
- Green building development- investments in sustainable infrastructure designed with energy efficiency.
- Renewable Energy Projects: Shifting the operations portfolio toward cleaner energy sources.
- Energy Efficiency Enhancements: Improving PUE and reducing energy used at the site.
- Water and Waste Management: Conserving water, reducing waste at the site in the operations.
- Decarbonization: Innovating for solutions that reduce greenhouse gas emissions.
- The budget allows for expenses incurred up to two years preceding the issuance date as well as up to three years following the issuance date, so that funding can be implemented to effect impactful projects.
Sustainability Leadership and Milestones
Equinix has really made significant strides in sustainability, which are marked by the company’s operations performances in the calendar year 2023:
- 96% Renewable Energy Coverage
- In its global portfolio, Equinix maintained 96% renewable energy coverage, indicating its commitment to carbon reduction.
- Enhanced Operational Efficiency
- The company improved its power usage effectiveness by more than 8% compared to the previous calendar year, revealing energy efficiency in operation.
- Recognition on the CDP Climate Change A List
- Equinix was named to the prestigious CDP Climate Change A List for the second consecutive year, ranked among the top 2% of more than 23,000 reporting companies worldwide.
- Two significant achievements – operational excellence and reduced environmental footprint.
Future First Sustainability Strategy - Equinix is leading in innovations that address climate challenges through its global Future First sustainability strategy, which includes:
Energy Efficiency Projects: Deployment of world-class innovations to enhance efficiency in the utilization of energy.
Renewable Energy Investments: Increase adoption of renewable energy in all operations to meet global decarbonization ambitions.
Heat Export Initiatives: Utilization of data center waste heat for community and industrial use.
Through these initiatives, Equinix seeks to bring maximum environmental benefit while building value for customers, investors, and relevant stakeholders.
Becoming a Leader in Green Digital Infrastructure
The substantial green bond issuance further positions Equinix as a leader in sustainable digital infrastructure, committing the company further to environmental sustainability. The company is actually driving global transition to a low-carbon economy by aligning its financial strategy with its environmental goals.
But as digital infrastructure becomes an increasingly critical part of global connectivity and innovation, Equinix’s commitment to sustainability sets a different kind of precedent for the industry. With green finance, it not only funds impactful projects but also shows its responsibility toward the planet and society.
A Pioneering Vision for Sustainability
Equinix’s sustainability efforts reflect a comprehensive vision to integrate environmental, social, and governance (ESG) considerations into its core operations. From renewable energy adoption to innovative decarbonization technologies, the company is paving the way for a more sustainable and resilient future.
Equinix sets an example in how financial strategy can be balanced with the overall goal of sustainability. The company is continuing on its own trajectory, hence remaining a leader in sustainable digital infrastructure.
As Equinix focuses solely on sustainable value creation for all stakeholders, its decision to issue a record-breaking green bond is one of the most recent top marks in its mission to drive global sustainable growth and innovation.