Investors back European data centre securitisation

Vantage Data Centers has raised $821.4 million through a euro-denominated asset-backed securitisation deal, the first of its kind involving data centre assets in Europe.

The financing is secured against four facilities in Germany, located in Berlin and Frankfurt, which are fully leased to hyperscale customers and have access to around 55 megawatts of power.

The proceeds will be used to repay existing construction loans. The company said investor interest exceeded expectations.

“We believe the ABS market in particular is kind of best suited for our type of asset, which is real estate centric, high credit quality tenants, long term leases, something that is almost perfect for the ABS investor,” said Sharif Metwalli, chief financial officer of Vantage Data Centers.

“Yet, despite that, we were basically two and four times oversubscribed on the respective financings, and we were able to tighten pricing pretty meaningfully through the marketing process,” added Rich Cosgray, senior vice president of global capital markets.