EdgeConneX has secured $150 million in sustainability-linked financing to support its operations in Latin America, including expanding in Colombia.

The loan refinances outstanding indebtedness and is designed to be used as a financing platform for the company’s future activity in Latin America, including Chile and Colombia.

Santiago Chile
– Thinkstock / komyvgory

The company said the loan incentivizes outperformance on the data centers’ energy efficiency, renewable energy consumption, and environmental certification.

“This is a landmark transaction in the digital infrastructure space in Latin America, as combined green loan principles and sustainability-linked loan principles are considered to be the first combination sustainability data center financing in the Latin American market,” said Joe Harar, CFO at EdgeConneX. “This latest funding provides EdgeConneX with the backing necessary to continue its regional expansion in Latin America and to do so in a sustainability-minded way.”

Sustainability-linked financing is quickly becoming a common trend amongst data center and telco firms. The likes of Equinix, Verizon, Aligned, Telefónica, NTT, Airtrunk, KPN, Baidu, Atos, Digital Realty, Flexential, and Nabiax have all raised new funds or converted existing debt to include interest rates tied to sustainability and ESG goals.

Earlier this year EdgeConneX announced a series of sustainability-linked financings totaling $1.7 Billion including EdgeConneX’s first-ever Asset-Backed Securitization (ABS) and multi-currency term loan (ESG Term Loan).

EdgeConneX announced its first moves into Latin America in 2018, beginning with a 1MW facility in Buenos Aires, Argentina scalable up to 10MW. A facility in Santiago, Chile, followed, with a second in the works.

This is seemingly the first time the company has outlined plans to expand into Colombia.

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