Japanese investment bank MUFG has closed a US$404 million sustainability-linked loan (SLL) facility for the development in Jakarta, Indonesia, of two data centres by PT Graha Teknologi Nusantara, a wholly owned subsidiary of EdgeConneX.
MUFG is one of the four mandated lead arrangers (MLAs), as well as the account bank, facility agent, security agent and hedging bank for the transaction, which is the bank’s second project financed greenfield data centre transaction in Asia-Pacific this year.
This financing represents the first-ever SLL facilities for data centres in Indonesia. The sustainability key performance indicators (KPIs) framework has been developed to comply with the SLL principles published by the Loan Market Association, and the KPIs adopted are aligned with EdgeConneX’s sustainability strategy and commitments.
Data centres have high energy consumption needs, and key areas of focus for sustainability are powering data centres efficiently and with renewable energy. The project has also incorporated lost time injury rate as a KPI to advocate for higher workplace safety standards, which is especially relevant in developing countries.
“Digitalization is a key driver of economic growth, and data centres are among the critical infrastructure underpinning the trend,” says Shiv Sivarajah, the bank’s head of project finance for Asia. “This deal is testament to our ability to support our digital infrastructure clients by tailoring bespoke financing solutions, including the incorporation of relevant and ambitious sustainability goals.”