Listed infrastructure investment company Infratil is raising NZ$1.15bn (€658m) via a fully underwritten share placement to fund growth and invest further into Australia and New Zealand data centre operator CDC.
Canberra-based CDC which operates 268MW in capacity is 48.2% owned by Infratil, and 25% each by the Future Fund and the Commonwealth Superannuation Corporation (CSC).
James Boyce, Infratil’s CEO, said he expected CDC’s major shareholders to also take up their pro-rata entitlement in the equity raising.
Interests associated with Infratil’s manager, Morrison, and related parties have pre-committed to subscribe for NZ$63.27m worth of new shares in the placement equivalent to their pro rata share.
Boyes said around A$600m (€370m) of the equity raising will be allocated to CDC over the next two years, which represented its pro-rata share of estimated funding capacity required by CDC to execute on its medium-term development pipeline.
“CDC continues to see a surge in demand for data centre capacity. The proceeds of the equity raising will be used to fund its accelerated growth, and provide additional balance sheet flexibility to allow Infratil to continue to invest across our portfolio, including healthcare.”
The capital raising, combined with cash on hand and currently available and undrawn debt facilities, will provide Infratil with about NZ$1.8BN of total available liquidity.
CDC CEO Greg Boorer said: “Including reservations and rights-of-first refusals, over the last 18 months we have signed contracts for 200MW plus of capacity and we continue to see higher demand in the Australian and New Zealand markets.”
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