Equinix Reinforces Commitment to Sustainability with New €1.15 Billion in Green Bonds

Equinix Expands Sustainability Efforts with Green Bonds

Equinix, Inc., known as a leading player in the digital infrastructure sphere, has recently unveiled its latest sustainability initiative by issuing an additional €1.15 billion in green bonds. This strategic move is part of a broader commitment to eco-friendly business practices, boasting a total of about $6.9 billion raised through green bonds, positioning Equinix among the top five issuers in the U.S. investment-grade green bond market.

This latest issuance follows significant offerings that Equinix completed earlier this year, which totaled more than $750 million in September. With these extensive funds, Equinix aims to foster various sustainability initiatives that not only uphold operational efficiency but also strengthen its global business objectives.

Commitment to Green Finance

Katrina Rymill, Senior Vice President of Corporate Finance & Sustainability at Equinix, emphasized the company's view of green finance as an essential component of its sustainability strategy. "Our green bonds represent our lasting commitment to designing, building, and delivering reliable, secure, and sustainable data centers and digital infrastructure that benefit our clients, investors, and the communities we serve,” she stated.

The latest bond offerings encompass €650 million in principal amount of senior green notes due in 2031, and €500 million in senior green notes due in 2034. A significant portion of the interest rate risk related to these Euro green bonds was hedged through rate locks. Consequently, the six-year and ten-year Euro green bonds are anticipated to yield effective coupon rates for Equinix of 3.27% and 3.65%, respectively.

Closing on November 22, 2024, these bonds are set to finance or refinance eligible green projects by Equinix. Interestingly, the company's strategy allows coverage of project expenditures dating back up to two years pre-issuance and up to three years post-issuance of the green bonds, encapsulating a wide spectrum of impactful green initiatives.

Emphasizing Eligible Green Projects

Equinix adheres to its 2024 Green Finance Framework, which aligns with the Green Bond Principles set out in June 2021 and the Green Loan Principles established in February 2023. This framework aims to enhance transparency and foster integrity while standardizing disclosures pertaining to green debt. Equinix is steadfast in its pledge to mitigate climate change through greenhouse gas emissions reduction, increasing resource efficiency, and promoting corporate transparency and accountability.

Equinix has not only focused on traditional green measures but also on innovative technology solutions including energy efficiency, renewable energy capabilities, and heat export projects. As part of its cutting-edge Future First sustainability strategy, the company targets significant impacts on its customers and stakeholders alike.

In the year 2023, Equinix maintained an impressive 96% renewable energy coverage throughout its facilities and achieved an over 8% improvement in energy efficiency, as reflected by its power usage effectiveness (PUE) score

In addition to these achievements, Equinix’s climate performance has been recognized globally. The company again secured the highest position on the CDP's esteemed Climate Change A List for two consecutive years in 2023, a significant accomplishment given that only less than 2% of the over 23,000 companies that disclosed environmental data to CDP earned this prestigious ranking.

Looking Ahead

As Equinix continues to expand its sustainability initiatives through innovative financing avenues like green bonds, its overall commitment to environmental stewardship is clear. The establishment of this robust framework not only facilitates the financing of essential green projects but also solidifies Equinix's reputation as a pioneer in the digital infrastructure domain focused on sustainability.

For those interested in learning more about the specifics of Equinix's sustainability efforts, additional resources including their sustainability report and blogs on green bonds are available.

\*Equinix underscores the necessity of integrating sustainability into core business activities, and this latest financial undertaking is a testament to their unwavering commitment to a greener planet.