La Caisse has made a binding commitment of A$1bn (€599.4m) to the listed Australian data centre operator, NEXTDC, through a wholesale subordinated hybrid securities offer.
NEXTDC launched the extremely rare 100-year issuance to provide the company with flexible, long-term capital to support its growth funding requirements and strategic initiatives, including the continued development of key data centre assets and future expansions, the company said.
The hybrid securities will have a non-call period of five years and a maturity of 100 years. This funding is expected to enhance the company’s financial flexibility, including through a lower cash coupon during the first five years, small coupon step-ups until year 10 and the ability to defer coupons at its election.
Emmanuel Jaclot, La Caisse’s executive vice-president and head of infrastructure and sustainability said: “This commitment will help underpin NEXTDC’s construction programme, supporting growing demand for digital infrastructure in Australia and adding to La Caisse’s long track record in partnering with high-quality infrastructure operators through their growth phase. We see this as a promising first step toward a long-term partnership between La Caisse and NEXTDC.”
NEXTDC’s chief executive officer and managing director, Craig Scroggie said: “The La Caisse commitment represents another step toward NEXTDC delivering on a material step-change in the scale of our business. We are delighted with this binding commitment from La Caisse, a long-term investor with deep experience in infrastructure, as further validation of our growth strategy”
Scroggie said the company would deploy the proceeds on further investments across the portfolio of new projects as it delivered the company’s contracted forward order book over the next three years.
Described as “deeply subordinated instruments”, these papers will not be converted into equity. NEXTDC is now offering the hybrid securities to a group of institutional investors, who have just over a fortnight to subscribe to the issue.
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