Business
Equinix Prices $1.2 billion of Green Bonds in its Fourth Offering to Advance Sustainability Initiatives
With this latest issuance, Equinix is now the the 4th largest green bond issuer globally REDWOOD CITY, Calif., April 4, 2022 /PRNewswire/ -- Equinix, Inc.
About this update from Equinix, Inc.
[{"type":"text","content":"With this latest issuance, Equinix is now the the 4th largest green bond issuer globally\nREDWOOD CITY, Calif., April 4, 2022 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today announced that it priced $1.2 billion principal amount of 3.90% senior green notes due 2032 (the \"green bonds\") in its fourth green bond offering. The green bonds will be used to help advance the company's longstanding commitment to sustainability leadership and reducing its environmental impact. The offering is expected to close on April 5, 2022, subject to the satisfaction of customary closing conditions. \nEquinix used treasury locks to hedge a significant portion of interest rate risk associated with the issuance of the green bonds. Such hedges resulted in a cash gain of $58.4 million, which will be reported ratably over the term of the debt, reducing the effective coupon on the bonds to 3.35%. \nWith this latest offer, Equinix will have approximately $4.9 billion of green bonds issued, making it the fourth largest global issuer in the investment grade green bond market.1\nEquinix intends to allocate an amount equal to the net proceeds from the green bonds to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects. This includes disbursements covering project expenditures for up to two years preceding the issuance date of the green bonds and until and including the maturity date of the green bonds, including the development and redevelopment of such projects. Eligible Green Projects include categories such as green buildings, renewable energy, energy efficiency, sustainable water and wastewater management, waste management and clean transportation.\nHighlights/Key Facts\nEquinix has developed a Green Finance Framework based on the Green Bond Principles and Green Loan Principles, a set of guidelines that promote transparency and integrity in, and advance the standardization of, green debt disclosures. The Framework increases Equinix's focus on protecting the environment and addressing global climate change through greenhouse gas emissions reductions, increasing resource efficiency and driving corporate transparency and accountability. Use of proceeds from previous green bonds issued by Equinix have been allocated toward initiaitives that include:Launched earlier thi...